Most people who are in financial trouble, I think bankruptcy is your only option. It is often thought about filing for bankruptcy as soon as you recognize that are the problem. However, bankruptcy should be a last resort. Look into bankruptcy only when they have exhausted all other alternatives. Before taking the final decision to file for bankruptcy, consider the following options. If, after weighing these options, they still believe they have no other option but bankruptcy, you may file with the certainty that he had no choice. RefinancingIf homeowner and have equity, you may be able to get a home equity loan. You can use the proceeds of this loan to pay debts of others. The advantage of using a loan to pay their debts is that you get rid of all other monthly payments and have a low-cost single payment each month. Debt Consolidation LoansIf you have sufficient credit, you may be able to consolidate all your monthly payments into one with a debt consolidation loan. A debt consolidation loan, however, usually requires that you have decent credit and guarantees. This alternative is best done early in the evaluation of their financial situation. If you wait until you start having late payments on their credit cards, you will probably have a difficult time obtaining a debt consolidation loan. SettlementDebt debt settlement allows you to pay some of his creditors less than they should as a full and final settlement of their claims against him. Why would a creditor to consider his offer of a reduced solution? Because they have a vested interest to help you stay out of bankruptcy. If you declare bankruptcy, they get even less than the tender of a settlement of the debt. While you may be able to obtain payment of the debt itself is for your benefit and use of a good company debt settlement to help you negotiate with your creditors. And if you decide to go this route, you want to make sure you have money on hand for immediate payment of its creditors. You want to close the account and the report that "pays as agreed" on your credit report. A debt settlement company will help ensure that every part of your debt repayment is done correctly. NegotiationNegotiating debt debt is not the same as the solution of their debt. In debt negotiation, debt is not removed. The debt negotiation starts with you by calling each of your creditors to discuss their financial difficulties with them. I want to explain that you are looking at bankruptcy, but first wants to investigate other options. One option is to discuss the possibility of lowering interest rates and creating a payment plan that fits your current financial situation. Many of their credit card companies will reduce your interest rate. Some may also reduce interest rates, stop late fees and finance charges completely. In either situation your payments really start to make a real difference and begin to undermine the principal balance you owe on the debt. When that happens, probably will not have trouble paying the debt completely within negotiated time.