Bankruptcy has a tendency to sneak up on you before you even know it. The situation may go something like this. You get a few new credit cards with high limits, and start buying whatever you want, not what you need. It's good as long as you are spending.

When pay day rolls around, you realize you don’t have enough to pay your bills. What do you do? File bankruptcy. Stop. There have been millions who have filed bankruptcy in the US of A last year! What causes this decision, and how can you avoid such a disastrous situation?

You have curtailed all your expenses, you take a bus to the office, your wife does the same and your children take the school bus. Your car is a toy in the garage. You have stopped entertaining friends and have stopped going over to them. When you see, even after a month, you are exactly where you started off, you know it's time to take some extreme measures.

For most people, the first thought that comes to mind when they find themselves so deeply in debt is to file bankruptcy. It may seem like the only choice left when they are knee deep in unpaid bills and abusive creditor calls. There are better and more realistic ways of fighting your debts however. Avoid bankruptcy by all means.

Debt consolidation with debt management and debt relief programs are the best refuge for you. Contact a reliable debt consolidation firm and tell them your plight. You will literally feel the weight being taken off your shoulders. These financial experts take over completely. First, they call your creditors and stop them from calling you. If you have multiple debts, they squeeze all your debts into one lump payment and make your payments much simpler.

You are only to make one lowly payment every month and you actually see your debts disappear in months! This is possible due to these debt consolidation experts who convince your creditors to lower their interest rates and make payments easier for you. In fact, you do not interact with your creditors at all anymore. These experts act as the middle man and you will only receive letters from your creditors showing you how your debts are decreasing.

The most important thing to remember about managing finances is to avoid the debt-trap as much as possible. It is always advisable to make a budget at the beginning of the month. You have to live by it however. Don't spend all of your money on luxuries. That will invariably lead you to compromise on necessary items. There is no better rule than saving. That is the only thing that will help you plug emergency expenses. Bankruptcy is the last of all the conceivable methods to start afresh. It is never too late to mend. You just need to give up certain things to achieve happiness and peace in your life.