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Once you have a good idea of what you owe, you need to balance it against what you have. This does not mean just money. This means anything you can get rid of to pay down your debt. If you have a second vehicle, it is time to consider whether you can do without it. Short of the roof over your head, every need has to be looked at as a "want" to see if it is feasible to do without it.

- An alternative can also be a part-time job although you have to consider this option carefully because it can end up costing you money. I know, because it happened to me. I worked a full-time job and a part-time job. At income tax time, both jobs were lumped together as one income and, of course, not enough income tax had been taken off and I ended up owing $4000. So much for making any extra money. Keep in mind that this is in Canada where the tax rate is much higher than it is in the USA.
- Try negotiating a consolidation loan with your bank. This only works if you have enough assets and your credit is good. Also, if you do not change your spending habits you will find yourself back in the same situation again, with a huge loan to pay as well.
- In every province in Canada and all U.S. states there are credit organizations that will provide credit counselling, assess your situation and advise you of your options. Go with a not-for-profit credit counselling organization, or with an organization that has a licensed bankruptcy trustee. These people will help you explore your options A Debt Repayment Plan can often be worked out by a Credit Counselling Agency (CCA), as long as you have the income to pay a sufficient amount to your creditors every month. For example: if you owe $20,000 in credit card debt and are just paying the minimum each month, or worse, paying an amount and using the card so the balance never decreases, a CCA can negotiate with your creditors to lower the interest rate, or in some cases, get the interest rate stopped altogether. You pay the CCA and they pay your creditors. However, for this to be a viable option you must be current with your payments. A Consumer Proposal is generally not recommended for anyone who is seriously behind in his or her bills. Creditors usually will not agree to a proposal if this is the case. If you are fairly up-to-date, the CCA sends a proposal to each of your creditors and they have to agree to it before this is one your options.

There are alternatives to bankruptcy. Do your homework. If you have to pay a company a large sum of money

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