Consumer debt is at an all-time high and over 1.5 million consumers filed for bankruptcy in 2004. Debt have you down? You're not alone! Whether the result of illness, job loss, or simply overspending, a high debt load can seem overwhelming. Bankruptcy is often considered the step of last resort for consumers - the bankruptcy lasts 10 years on your credit report and can prevent you from purchasing a house, buying a new car, or getting the job you want.

You have probably heard the great deals to erase your debt:

"Consolidate your bills into one low monthly payment without borrowing!"

"Keep your property and erase your debt!"

"STOP harassing collection calls forever without a problem!"

Many of these advertisements are really for agencies helping you to file for bankruptcy (for a fee!). Be cautious of any organization offering to erase your debt with no repercussions to your credit - it's just not possible!

If you are having trouble making payments on your debt, take these steps:

• Talk with your creditors. Creditors do not want you to give up and file bankruptcy - they may never see the money you owe. Try asking for a modified payment plan.
• Contact a credit counseling service. There are many legitimate credit counseling services available to help negotiate with your creditors and reduce your interest rate and propose a new payment plan. Typically these organizations require you to pay them a monthly amount which they distribute to your creditors. Sometimes there is a fee - shop around before deciding which credit counseling service to use.
• Equity in your home. Adding debt to your problems is not always the best solution, especially when it could mean losing your home, but taking out a second mortgage or home equity line of credit can help you consolidate your debt into one lower monthly payment. Be sure to investigate carefully - and not get into more debt once you have paid off the original debt!