When you have completed your budget, contact your credit card companies directly and see if you can get them to agree on changing the terms of the repayment of the debt.  Unfortunately, most credit card companies will not change the repayment terms unless you fall at least three months behind.  Of course, if you stop making your payments, your credit score will drop significantly.  

If you are unable to negotiate directly with your creditors, then consult with an attorney to consider all of your options including hiring a debt management company or filing bankruptcy. 

A common question we receive in our offices is “what’s the difference between private debt consolidation and filing Chapter 13 and which is better?”  Though the concept is nearly the same, there are many important differences.  If you’re interested in maintaining a good credit rating and you don’t want your debt problems to become public record, then private debt consolidation may meet your needs. Private debt consolidation, however, can’t give you guaranteed court protection from your creditors.  Creditors can still proceed with legal action against you to collect their debts. On the other hand, Chapter 13 offers significantly more protection to you and your family, allowing you to pay your creditors a percentage of the debt owed (often as low as ten percent) and discharges the remaining balance.  And perhaps best of all, creditors cannot repossess or foreclose on your property.

What’s best for you will naturally depend on your specific debts, personal priorities and income status.