One of the biggest problems the US is facing today is the increasing consumer debt. And coupled with that is the fact that personal savings have hit an all time low. With such extreme situation on both fronts it is not a surprise that even the smallest of financial problems can spiral out of control sending the person deep into debt trap just within months.

Today's consumerist culture has a lot of responsibility for this current situation. With the promise of plastic money and the lure of the coolest stuff we often end up spending more than we can afford to. And by the time it hits us it is already too late. And if we fail to take remedial action instantly, things soon go out of control.

If you are being bothered about your spiraling bills for a longish period of time and you are not too comfortable with the situation then the best thing you can do is to be honest with yourself and work out exactly how bad the situation is. This you can do simply by making two spreadsheets - one for the money that comes in and the other for the money that has to go out. So you make a list of all your sources of income and you make a list of all the bills and other debts you have to pay. Factor in the interest also and the dates when you will have to pay. Tally the two sheets and see if the figures are close and if things can be brought back to control. If the figures suggest that a part time job will bail you out of the situation then do that. Not only will you earn more money, but you will also have less time to spend.

But then there can always be that situation when it seems completely hopeless and you think you will have to declare yourself bankrupt. But before taking any such crucial decision you must consult with a debt management or credit counseling service. They have experts in their panel and they would know much better than you do on how to handle your debt. They will help you chalk out a plan on how exactly you will need to plan your future to repay your debt and better manage your credit in the future. if required they will even negotiate with your creditors to get you more friendly interest rates or longer periods to eliminate your debt..