Non-profit credit counselors are available in virtually every city. For modest fees, counselors go through your debts, analyze your income, and help you work out ways to handle your debts. However, you may have to wait for an appointment if an office is busy.

Loan consolidators are private businesses that lend you money to pay off all your debts. You then owe only one creditor -- them. The good news is that you pay only one check a month, you can repay over a long term, and you can make low monthly payments. The bad news is that the interest they charge may be very high, and you may also be hit with stiff fees for paying off the consolidated loan ahead of schedule.

Credit cards can be lifesavers, most users agree. But many people who find themselves at sea financially are threatened by short-term debt, often credit card debt. According to the Federal Reserve Board, consumers on average owe more than 20% of their income, not counting what they owe in mortgages and home equity loans.

Continuing to charge can help to pull you under if you're in debt, since the interest you pay on your outstanding balances is usually higher than on most other types of loans. Credit counselors often suggest getting rid of your credit cards, which forces you to limit what you spend. Even if you hang on to one card for emergency use, you'll find that it's probably smarter to pay most of your bills with cash.

It takes time to repay accumulated debts, especially if you postpone confronting the problem. The National Foundation for Credit Counseling estimates that three to four years is typical for the people who come to their offices. Some other credit counselors suggest that if it's going to take you five years or more, bankruptcy might be a wiser alternative -- though it has serious drawbacks as well.

Bankruptcy is the solution of last resort -- a harsh but legal remedy for preventing financial disaster. In general, bankruptcy is a three-step process:

• You file a petition in federal or state court saying you're insolvent, which means you have no assets to pay your debts.
• You work out a repayment plan with your creditors and the court.
• You discharge, or settle, your debts, usually for less than their full amount, so that your creditors receive at least some money.

Here are some issues to weigh when considering bankruptcy:

PROS

• Provides legal protection from creditors
• Staves off financial ruin
• Resolves most debts
• May prevent loss of your home
• Provides chance to start again
• Protects you against IRS seizing property for back taxes

CONS

• Loss of privacy
• Serious harm to credit history
• Some debts remain outstanding
• Involvement with courts
• Loss of assets 

It's always smart to consult a lawyer before filing for bankruptcy, and in some cases it's required. There are two standard ways for individuals to file for bankruptcy, each named for the section of the legal code that governs it.

Chapter 7, or "straight bankruptcy." You ask to be released from all your debts, after selling all your assets to pay creditors. Some assets, like your home, may be exempt from sale. Some debts, like taxes, fines, alimony and student loans must still be paid. You can file for straight bankruptcy only once within a six-year period, and you should work with an attorney to do it.

A lawyer is required if you want to file for Chapter 13 bankruptcy. The purpose of Chapter 13 is to allow people to retain their property and to avoid the stigma usually associated with the term bankruptcy. A court approves a plan to pay out creditors over three to five years using your wages. Payment is not necessarily in full. The plan is supervised by a court-appointed person, called a trustee. Some income, like child support, is excluded from the payment plan and must be paid in full.