How to Stop Credit Card Debt Without Bankruptcy

Debt can weigh you down and create a major financial burden. And for some people, bankruptcy is the only way out of debt. Although a bankruptcy provides a fresh start, a discharge destroys your credit rating, and it can take years to regain a lender's trust. While bankruptcy may seem like the only alternative, there are ways to manage debt and eliminate credit card balances without completely damaging your credit rating.

Instructions

1

Track your spending habits. For an entire month, keep track of your expenditures. Hold onto receipts and calculate how much you spend on everyday goods and services, such as transportation, groceries, rent, utilities and insurance.

2

Assess your available income. Subtract your expenses from your monthly income to determine how much remaining income you have available each month.

3

Increase your income. Eliminating debt without bankruptcy requires additional income. If you don't have disposable cash, identify ways to produce extra cash, such as a second job, selling personal items or forgoing cable TV or a cellphone.

4

Learn how to live with less. Extravagant spending habits and a high maintenance lifestyle contribute to high debt. Live within your means and cut back on extra expenses, such as hair appointments, dining out, shopping, vacations and any other activity that takes a chunk out of your income.

5

Use your equity. Contact a mortgage lender to see if you qualify for a cash-out refinance or low rate home equity loan. Use the money to pay off credit card debt, then repay your lender at a lower interest rate and payment.

6

Consolidate your credit card bills. Consult with a debt consolidation or debt management agency to get rid of debt without bankruptcy. Agencies will consolidate your credit card bills at a lower rate and manage your accounts until all balances are paid.