Debt problems can quickly snowball out of control. If you find that your debts have put you on the brink of bankruptcy, it is imperative that you take steps to manage your debt.

To assist you in your quest, here are 50 ways to manage your debt and avoid bankruptcy.

1. Get to the Bottom of Your Debt Problem
Knowing how your debt became unmanageable is an important part of solving debt problems and avoiding bankruptcy. Perhaps you have problems sticking to a budget; maybe you have a shopping addiction or issues with irresponsible credit card use; the debt may be a result of job loss or another life changing event whatever the issue is, you need to get to the bottom of it. This will enable you to come up with a solution that will bring more than just temporary relief.
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2. Determine How Much You Owe
Before you can begin to manage debt or contemplate bankruptcy, you need to determine how much debt you have. This will involve gathering all of your credit card statements, loan agreements, and other outstanding bills. After adding up the total balances on each, you can begin to set feasible repayment goals and timelines.

3. Prioritize Your Debts
Before you begin paying anything you need to prioritize your debts. Items that will result in jail time or lawsuits should be paid first. Such items include court fines, traffic tickets, and child support. Secured debts should be paid second. These include your mortgage payment, auto installments, and loans that have been secured by one of your assets. Next on the list are the debts that have high interest rates or stiff non-payment penalties. Such debts may include student loans or credit cards.

4. Communicate With Your Creditors
If you are receiving calls or letters from credit card companies, financial institutions, or collection agencies, it is imperative that you respond. Burying your head in the sand will not make your debt problems go away. In fact, ignoring your debt may make a bad situation worse.

5. Request Write-Offs for Old Debts
In certain cases, you may be able to get old debts written off. Before paying anything, you should contact creditors or collection agencies that are listed on your credit report. Ask that they provide written proof that the debt exists. If they cannot provide you with the proof, you have the right to ask that the debt be written off and removed from your credit report.

6. Settle Debts
If you can somehow manage to come up with a lump sum of money, you may be able to settle your debts for a portion of what you owe. In some cases, you can get creditors to write off as much as 60 percent of your debt if you agree to pay the remaining balance in a lump sum. If you don’t have a lump sum of cash to apply to your debts, you can still try to settle them through a repayment plan, but it may be hard to get creditors to agree to large debt reductions.

7. Get a Cash Advance to Pay Debts
Many credit cards allow cardholders to get a cash advance. If you have a significant amount of debt, you may want to consider getting an advance to pay some of it down. Borrowing more money to pay back the money you owe can be dangerous, but if you handle the situation carefully and responsibly, it will allow you to avoid bankruptcy.

8. Ask Your Creditor to Take Back the Debt
If your debt has been transferred to a collection agency, it may be difficult to negotiate for lower rates, better terms, or reduced balances. This is why it is a good idea to ask your creditor to take back the debt. The actual creditor will have much more leeway in negotiation than any collection agency.

9. Negotiate a Trade
While you will have a difficult time negotiating a trade with banks or credit card companies, you may be able to work something out with other creditors like appliance repair companies, plumbers, and other independent contractors. You can offer assets like used vehicles or you can offer to work off the debt through various services. If you are good at working on cars, if you run a daycare facility, or if you have some other useful service to provide you may be surprised at how willing your creditors are to deal.

10. Give Back the Collateral
If you have a secured debt that you want to get out of, you can offer to give the collateral to a creditor or collection agency. In some cases, your debt will be erased. In others, you may be required to pay the difference between what is owed and the value of the item. If the collateral isn’t that important to you and hasn’t depreciated in value by that much, this is one of the best ways to settle your debts.

11. Contact a Lawyer
If your debt problems are the result of a bad loan or a credit scam, you may be able to seek out a judgment against the lender or creditor. This will usually involve getting a lawyer to assess the situation. A good lawyer will be able to tell you whether or not the law is on your side and will be able to help you get the retribution you deserve.

12. Oppose Lawsuits
If a creditor takes you to court, you need to oppose the lawsuit. If you fail to do this or fail to show up in court, the court will automatically issue a judgment against you. Once this has happened, your wages will most likely be garnished and it will be very difficult to get the judgment reversed.

13. Control Your Spending
You will never be able to pay down your debts if you do not control your current spending habits. If you are trying to practice good debt management, you need to set a strict budget and stick with it. The budget may be difficult to follow at first, but over time you will see the positive impact it has on your debt load.

14. Look for Ways to Save Money
Curbing your spending is important, but you must also look for ways that you can save money on a daily basis. This may mean clipping coupons, looking for lower insurance rates, or ordering the special instead of something off the menu. With every dime you spend, you need to ask yourself if there is a way to save money.

15. Start Using Debit Cards
If you shop frequently with cash or charge cards, you need to find a better way to track your expenditures. One of the best ways is through the use of a debit card. By using a debit card, you can easily monitor all of your spending activity using your monthly statement. You will also find yourself limiting small purchases and acting more responsible when you have a piece of plastic in your hand.

16. Quit Buying on Credit
If most of your debts consist of credit card debts, you need to quit buying on credit immediately. I will be almost impossible to pay down your credit card balances if you continue to add to them on a monthly basis. If necessary, hide the cards or cut them up so that you can easily resist the urge to buy on credit.

17. Make More Than the Minimum Payment
Credit card companies structure their payments in a way that benefits them not the consumer. By making only the minimum payment, you fall right into their trap. You pay and pay, but never seem to make much of a dent in the balance. The reason is because you are paying mainly on the interest, not the principle. This puts money in your creditor’s pockets and leaves you struggling with what seems like a never ending debt. If at all possible, you must make more than the minimum payment. It’s the only way to pay off credit card debt in a timely manner.

18. Ask for a Lower Interest Rate
To make your debts easier to manage, you should ask your creditors for a lower interest rate. Most credit card companies and even some banks will be more than willing to lower your rate if you ask them to. If you do get someone who tells you no, don’t stop there. Instead, explain your situation and ask again. If that doesn’t work, call back another day and speak to someone else. Sometimes you can get further with one representative than you can with another.

19. Transfer Credit Card Balances
If you can’t get a lower interest rate on all of your credit cards, transferring credit card balances will probably be your second best option. You can either transfer balances to a current card that has a lower interest rate or open up a new credit card account.

20. Consolidate Your Credit Card Debt
If you are having a hard time making your credit card payments on time on a regular basis, you may want to think about consolidating your credit card debt. With a secure or unsecured debt consolidation loan, you could pay everything off and then make only one payment each month. In some cases, you will save on interest and in some cases you won’t. Either way, your monthly payment will probably be lower.

21. Negotiate a Workout Agreement
A non-bankruptcy workout agreement will allow you to accomplish almost the same thing you could with a Chapter 13 without actually having to file bankruptcy. When you negotiate a workout agreement with your creditors, you agree to pay back the debts you owe during a very specific time frame. In some cases, you may be able to negotiate with your creditors to get balances or interest rates lower. This makes a non-bankruptcy workout agreement an option that is definitely worth pursuing.

22. Bolster Your Income
If you have more money going out than you have coming in, it will be very difficult to stick to a budget, manage debt, or avoid bankruptcy. This is why it may be a good idea to find a way to bolster your current income. You could ask your current boss for a raise or more hours. You could also take on a second job or start a side business. Whatever you decide to do to get the money rolling in, make sure you put the extra you earn towards paying off your debts.
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23. Sell a Major Asset
If you want to get out of debt as fast as possible, you may want to consider selling a major asset. By selling a house, a car, or some other big ticket item, you could get yourself out of debt instantly. If not, you could at least be a little bit closer to repaying your debts completely. It should be noted however, that selling a major asset usually involves paying taxes on the profit you receive. It may be a good idea to figure this into the calculations when determining the price you will sell for.

24. Sell Unused Items
If you don’t have a major asset that you can part with, you can still sell some of the unused items that are just lying around your house taking up space. Using online auction sites like eBay and Amazon, you can sell old baseball cards or other collectible, books, movies, CDs, art, home accessories, clothes, and almost anything else imaginable. The amount you can get from auctions is usually double or triple what you can get at a pawn shop or garage sale. If you have enough stuff, you may be able to pay off your debts entirely.

25. Kick Your Bad Habits
If you have a smoking addiction, a shopping addiction, a gambling addiction, a drug addiction, or some other bad habit that is costing you money, you need to kick that habit to the curb. This type of behavior is harmful to not only your finances, but also to your physical well being.

26. Borrow From Family
If you have a family member or a generous friend who has the ability to help you get out of debt, it might be a good idea to borrow what you can from them. This will allow you to get the money you need without paying any interest. Family members also tend to be more flexible when it comes to repayment plans.

27. Utilize Employee Assistance Programs
There are many employers who offer Employee Assistance Programs (EAP). Plans may provide counseling, courses in debt management, and plans that allow you to borrow from future income. Companies who offer EAPs usually maintain strict confidentiality policies.

28. Contact a Government Agency
Although most government agencies are unable to help you with credit card debt, they can help you to make utility, rent, mortgage, and tax payments. You may also be able to sign up for food stamps, free daycare, unemployment, or one of the many other government benefits programs that are available. To find out what kind of programs are available in your state, contact your local human or family services agency.

29. Cash In On Your Retirement Plan
If you are really in a pickle, you may want to think about cashing in on your retirement or pension plan. The money you get could help you pay off your debts entirely and avoid bankruptcy proceedings. It should be noted however, that you may have to pay taxes or penalties when borrowing from certain plans.

30. Cash In On Your Life Insurance Policy
Cash value life insurance policies are very common. If you have a cash value life insurance policy, you can borrow against the cash value to pay down your debts. Although it depends on the extent of your debt, in most cases you should be able to get enough to pay everything off at one time.

31. Sell Investments
If you have stocks or bonds outside of your retirement plan, you may want to consider selling some or all of these investments. Your best bet will be to sell the investments that won’t generate a huge tax bill, but will garner enough money to pay off a significant portion of your debt.

32. Dip Into Your Savings
If you have any savings at all, you should dip into it to pay off your debts. Doing so may seem like a bad idea and may even be heartbreaking depending on how long you have been saving and what you were saving for, but it will be more than worthwhile especially if you can get rid of high interest debt or avoid bankruptcy.

33. Use Your Income Tax Refund
Income tax refunds can provide huge windfalls for taxpayers especially for tax payers who have a low income or dependents. If you usually get an income tax refund, you should anticipate it before it comes and work out a payment plan with your creditor. If you put every penny you receive towards your debt, you can avoid filing bankruptcy, or at minimum, put it off a little longer.

34. Find More Affordable Housing
According to federal guidelines, you shouldn’t pay more than 30 percent of your gross income towards housing. If you are paying more than that, or even if you aren’t, you may want to think about finding more affordable housing. This may mean moving or taking on a temporary roommate. Any money you save will help you to put your debt behind you.

35. Get a Different Car
If you pay out money every month making auto loan or lease payments, you should probably consider getting a different car. If you buy a cheap car with no payments, you can eliminate one of your larger bills and save money on insurance at the same time. This might seem like a huge sacrifice, but it is actually a smart financial move. When you don’t pay cash for your car, you waste unnecessary money every month on a depreciating asset.

36. Get Help with Medical Bills
Medical bills can quickly become overwhelming, especially if you don’t have insurance. Fortunately, it is very easy to set up feasible repayment plans with most hospitals, health care clinics, and physician’s offices. Even if you can only pay $5 per month, a payment arrangement can almost always be made. You may even be able to get help with your medical bills through government or non-profit agencies. Another option is to ask to have your medical bills reduced. Many doctors and hospitals will be more than willing to accept only a portion of what you owe as long as you agree to pay.

37. Get a Voucher to Pay Taxes
There are many states that will provide vouchers to applicants that are seeking help with their property tax payments. To find out if a program exists in your area and to see if you are eligible for it, you should contact your local tax assessor.

38. Enter a Short Term Mortgage Repayment Plan
If you have fallen behind on your mortgage payments, but are only behind by a payment or two, most lenders will allow you to make up for the delinquency through a repayment plan. This may involve deferring payments, temporarily reducing payments, or suspending payments altogether.

39. Request a Mortgage Workout
If your debt problems are more than just a temporary situation, you can also request a “mortgage workout”. Mortgage workouts are agreements that you make with a lender to avoid foreclosure activity. The exact details of a mortgage workout will vary depending on your lender, the size of your loan and your financial situation, but common terms include extended terms, reduced payments, and short sale agreements.

40. Cancel Your Student Loans
Under certain circumstances, it is allowable to cancel federal student loans. If you are able to cancel your loan, it will wipe out your student loan debt completely as though it never existed. Circumstances that allow for this varies depending on the type of loan that you have. Before doing anything else, you should find out whether or not your student loans are eligible for cancellation.

41. Defer Student Loan Payments
If you can’t cancel your student loans, you may be able to defer your student loan payments. This won’t wipe out your student loan debt, but it will give you some time to get back on your feet and get other debts under control. If deferment isn’t an option, you can ask for forbearance. Interest will continue to accrue, but you will still be able to postpone your payments.

42. Refinance Student Loans
Sometimes all you need to make student loan payments more manageable is a student loan refinance. If you can lower your interest rate by a percentage point or two, it will automatically lower your monthly payment and free up extra cash.

43. Refinance Your Auto Loan
If your credit is still in decent shape, you will most likely have no problem getting approved for an auto refinance. You should also be able to get approved for a decent rate. To find out your savings potential, contact your current lender, as well as several other lenders for a refinance rate quote.

44. Get a Mortgage Refinance
Because rates are still at historical lows, now is a great time to consider a mortgage refinance. If you can switch to a fixed rate, get a lower rate, or extend your term, you stand to save a lot of money in the coming years. In the end, a mortgage refinance may prove to be one of the best things you did to permanently alter your debt situation.

45. Get a Home Equity Loan or Line of Credit
If you have equity built up in your home, you have cash just sitting there waiting to be plucked. A home equity loan or line of credit will help you tap into this equity. The money you get can be used in any way you see fit. And the best part is that in most cases, your loan interest will be tax deductible.

46. Get a Reverse Mortgage
If you are over the age of 62, you can get a reverse mortgage. Reverse mortgages allow you to borrow from your home’s value. So, if you have a home worth $100,000, you can borrow from the equity in one lump sum or have the bank pay you on a monthly basis. You will want to be very careful though, reverse mortgage can sometimes get seniors into trouble if they are taken out too early.

47. Consider Credit Counseling Services
A credit counseling service can be very helpful for people who are struggling with debt and need a little more time to pay it off and for those who are planning on filing bankruptcy but need to buy some time. Credit counseling professionals can act as an intermediary between you and your creditors, devising payment schedules and settling debts.

48. Consider Debt Negotiation Services
Debt negotiation services are very similar to credit counseling services, but they tend to be more aggressive and collect larger fees from their customers. If you are having trouble negotiating better terms with your creditors on your own, working with a debt negotiation service may be an option worth considering.

49. Join a Support Group
Debt problems are very common in our society. If you are struggling with debt, it is important to know that you are not alone. You can find support through groups online and within your local community. Support groups can offer an outlet for your stress and may prove to be very educational.

50. Stay Positive
Hovering on the brink of bankruptcy can be a stressful situation. At times, you may feel like giving up. It is very important that you resist this urge and stick with your debt management plan. By staying positive, you will greatly increase your chances of success.