Nobody intentionally gives themselves financial problems. Debt is a useful tool. Mortgages, car loans, student loans and even credit cards can help you attain a better standard of living. It starts with the need for more money than you currently have. For many people borrowing is manageable and if things happen the way they're supposed to, your income rises, your home goes up in value and your debt becomes easier to handle. But what if your financial landscape changes? You lose your job. A medical emergency arises. Divorce happens. Or maybe you just spent more borrowed money than you should have. Debt can quickly become a nightmare.

Too much debt can also hurt you in ways you never imagined. If debt becomes unmanagable it eventually turns into bad credit. These days employers may check your credit score when considering you for a job. People with with bad credit also pay more for car insurance. You might be required to put down a deposit when getting utilities where people with good credit don't have to. You can even get turned down when trying to rent a home. Being a credit risk not only makes getting credit hard, it makes everything else in your life more expensive!

If you're swimming in debt right now you need to do something about it as soon as possible. Bankruptsy is not a very good option. It won't come off your credit report for 7 years and with the new debt laws, it may not even take your financial obligations away!

A great way to get things back on track is debt consolidation. There are companies that will take all your bills and loans and lump them together but that's not the good part. They will negotiate with your creditors to accept less money than you owe which is something you will not be able to do on your own. Most often they will pay your debt for you and then you will pay one bill to the debt consolidation company. Not only do you get to pay less than you owe in most cases, but your bills will show as paid off right away, putting you on the road to better credit IMMEDIATELY.