Budget

• According to the Federal Trade Commission, the first step to controlling your debt and helping yourself out of credit trouble is organizing your debt into a monthly budget. You can use a basic computer spreadsheet program to develop a method of listing your monthly obligations and then comparing that to how much income you generate each month. You can also prioritize your payments based on the due dates of your bills and keep your credit score strong by paying your bills on time. A budget will also help you to see what your available funds are each month so that you know how much you have to apply to basic monthly expenses such as food and gas.
  
  

Saving Money

• The National Foundation for Credit Counseling suggests that forcing yourself to save money, even in bad times, can help to create more responsible financial habits that will help you avoid bad debt decisions in the future. Start out by putting aside an amount you know you can afford. It does not matter if it is $10 a week or $100 a week, if you can easily afford it then you are more apt to convince yourself to put the money aside. As you see your savings grow you will start to develop more responsible credit habits that will allow you to put more money aside each week and grow your savings account even larger. Being financially responsible is a matter of creating the right habits in your spending, and then enhancing those habits with positive results.
  
  

Bankruptcy

• Credit.org suggests that when your credit card debt has become insurmountable, then it may be time to declare bankruptcy. If you let your credit cards go because you cannot pay them, the credit card company could eventually ask for a wage garnishment of up to 25 percent of your pay until the debt is paid. With a bankruptcy, you will be given the chance to start over, you may be able to avoid wage garnishment and you can stop phone calls from credit collections companies. A bankruptcy should not be looked at as a positive option but rather a last resort. All possible options should be investigated prior to filing for bankruptcy.