If financial problems are plaguing you or someone you know, consider one of several options ranging from simple solutions, like budgeting, to the last resort option of bankruptcy. Depending on your debt level, your self-discipline, and your future financial prospects, you can determine what is the best option for you.

Develop a Budget - The most important step in improving your financial situation is to take a good, hard, realistic look at your income vs. your expenses. Prioritize your expenses by identifying expenses that are essential and cutting back or eliminating those that aren't. This way you can really start to track and control your spending.

Contact Your Creditors - Immediately contact your creditors if you are having trouble making your payments on time. You can explain the problem and try to negotiate a modified payment plan, reducing your payments to a manageable level.

Deal with Debt Collectors - Federal laws, such as the Fair Debt Collection Practices Act, regulates how and when a debt collector may contact you. Educate yourself about consumer rights regarding debt collection.

Credit Counseling - If you've tried but a're unable to resolve debt problems on your own, you may want to consider contacting a credit counseling service, which may help alleviate much of the stress of dealing with financial problems on your own. Counselors can help you design a manageable debt repayment plan and may even help you work with creditors to reduce payments.

Auto and Home Loans - If you're in danger of defaulting on an auto loan, consider selling the car on your own to pay off the debt. This way, you can avoid the added costs of repossession and the negative entry on your credit history. If you fall behind on your mortgage, immediately contact your lender to avoid foreclosure. Most lenders will work with you if the situation is temporary and they believe you're working to pay off the debt.

Debt Consolidation - A second mortgage or home equity line of credit may help you consolidate your debt and lower your cost of credit. Althought these loans can add up cost-wise, they may offer certain tax advantages not available with other kinds of credit. Use careful consideration, however, because these loans require your home as collateral.

Bankruptcy - Personal bankruptcy is generally considered a debt management last resort. The effects are far-reaching and long-lasting. A bankruptcy will remain on your credit report for 10 years, which can make it even more difficult to get credit, purchase a home, acquire life insurance, or even get a job. However, it is a legal procedure that can offer a new start for people who can't resolve their debts. Seek financial and/or legal counsel to decide if this option is right for you.