If you have made every effort to live within your means and are still struggling to maintain your monthly credit card payments, you may want to consider other methods to manage your debt. There are three options you may want to consider before filing bankruptcy.

You can visit your local non-profit credit counseling service for help. The service will negotiate a payment plan with your creditors. You will make one monthly payment to the counseling service and they will distribute the funds to your creditors. You will have to go through a financial evaluation and you cannot miss a payment. The advantage is the one monthly payment and possibly a lower interest rate on your debt.

There are several reputable online debt management plans that essentially provide the same benefits as your local non-profit counseling service. However, the online services will charge you a monthly fee. They also usually require payment to be made through automatic withdrawal from your bank account. For some people the online plans are more attractive since you do not have to sit with someone face to face. You complete your financial information online through the management plan web site.

A third option is to choose a debt settlement plan. The service negotiates on your behalf to reduce your debt and offer a payment plan to your creditors. Once you agree to the debt settlement, it is legal and binding. If you do not meet your obligations under the plan, you will have to pay the full amount of the debt.

You may want to start of with your local non-profit counseling service or a debt management plan before seeking debt settlement or bankruptcy. Before choosing an online management plan, make sure you research the various companies that offer the service. You want to choose a reputable company and one that does not charge a high monthly fee for the services.