If you are struggling with overwhelming debt, you may be wondering what options you have. Bankruptcy is often a viable choice for people who have no other way to free themselves from their debt obligations. Bankruptcy can provide a much needed fresh financial start in order to begin financial rebuilding.

There are some options, however, that may be available to you before you reach the point of needing to file for bankruptcy. It can be important to consider these possibilities because bankruptcy, although a very useful solution for many, can bring with it some consequences that are better to avoid.

Negotiating with creditors

One option to consider before you file for bankruptcy is to contact your creditors or debt collectors and ask to work with them to restructure your payments into a plan and schedule that you can afford. Many creditors would prefer to get something rather than nothing, and therefore are often willing to work with clients to help them reorganize their payments. This type of solution works best if you have a steady income and can still realistically devote some of that income to paying off your bills. 

Debt consolidation

Another possibility for reorganizing your debt is consolidation. In this option, your debts are combined into a consolidated one with a lower overall interest rate, so that you can begin to pay off your debt more effectively. There are several different ways to do this, and not all the solutions you see advertised are actually advisable. It is in your best interest to fully inform yourself about the conditions and parameters of a debt consolidation plan so that you can be sure you are actually getting a good deal and not further complicating your financial situation.

With some research and planning, you may be able to take advantage of a bankruptcy alternative to help you get back on track and get out of debt. Remember, however, that if your debt is spiraling out of control, ignoring the problem will not make it go away. Take action to get control of the situation and plan for your future.