As long as you keep making payments on your house and car.

But there is a huge downside to bankruptcy. It now stays on your record 10 years, thanks to legislation passed by Bush in his first term.

Bankruptcy should be a last resort. It will haunt you for the next 10 years, you may have higher interest rates as a result. Many times potential employers and landlords look at your credit report when you apply for jobs, apts, etc.

Look before you leap.

Call all of them and work out a payment plan and try to get your interest lowered or stopped.

Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.

You probably need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, Internet, etc. Lower your electric bill, gas bill, water bill, etc. Don’t eat at a restaurant until your debts are under control.

Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.

Go to the library and get “The Total Money Makeover”. Read it and follow it carefully.

Go check out Dave’s website as well.