When unexpected medical bills, job loss or high interest rates cause debt chaos we can feel as if our lives are spinning out of control. You begin to think about your finances day and night. You become over stressed and irritable towards family, friends and co-workers. Harassing phone calls from bill collectors can make you leery of answering the phone. With all of the negative effects of debt, regaining financial freedom can sound like heavenly music to your ears. You can be free from debt and all of the negativity that comes with it through debt consolidation.

The first step in regaining financial health is to contact your creditors. Be honest and upfront about your financial situation. Ask your creditor for a payment plan to help you regain control over the amount due. The company will be much more appreciative of you making an effort to pay down your bill.

The second step for better financial health is to go over your budget or create a new budget. Comb over your income, and expenses to see if there are any areas of unnecessary spending that need to be cut out.

Debt consolidation takes all of your unsecured debt (utility bills, cell phone, etc.) and credit card bills and consolidates them into a single monthly payment. You can have your high interest rates lowered and even eliminated. The harassing bill collection calls will cease. Over the limit and late fees will be diminished. This service is free through services such as Christian Debt Consolidation, where there are no hidden fees, just reliable assistance in working towards debt freedom. The debt consolidation is planned with your budget to create an affordable monthly payment. This allows you to pay off your debts quickly and can even allow money to remain in your pocket for personal use.

Debt consolidation can be a great alternative to bankruptcy. No attorney or court fees and no credit blemishes for the next seven to ten years. It is best to weigh your options and take the time to speak with a debt consolidation representative as well as a bankruptcy attorney. This will allow you to understand which choice is best for your personal debt situation. The choice is yours and no matter the option you decide on, regaining financial freedom and peace of mind is what really counts.

The third step if necessary, is to apply for Government assistance. Unemployment compensation, food stamps and other assistance is available if needed.

If you have tried the above methods and are still struggling with debt, contact a bankruptcy attorney. He or she will be able to evaluate your financial situation and help you to ultimately decide if bankruptcy is the right choice for you. Bankruptcy is not a shameful procedure. It is a legal process that allows people suffering from overwhelming debt to be given a fresh start and new control over their finances. Once bankruptcy has been filed and debts have been discharged you should put yourself in the frame of mind that your credit history is in the past and that you have a duty to yourself to focus on your credit present. You have a fresh clean financial slate and you should do what is necessary to keep it that way.