Amongst those who make New Year's resolutions, getting out of debt is a right up there with losing weight and quitting smoking. When a person owes a large amount of money, they have a weight on their shoulders that keeps them from moving forward. They don't just need to get out of debt; they need to stay out of debt. If this describes you, read on.

Analyze your Credit Reports, Negotiate with Creditors and Consider Consolidation.

Tackling your credit reports may seem daunting, but is the first step in the right direction. Credit reports often have faulty information. Go through your reports, and make sure the information is both correct and balanced within all three. All three credit reports should have the same information. If not - write to them and request they be corrected. Getting rid of old history (if bad) is another crucial step.

Try to settle smaller debt and lower your monthly payments. Offer what you can pay and not what the balance shows. Often, creditors will be happy to get what they can rather than lose all the money. Remember to get an agreement in writing before you send them money. When creditors give you a difficult time despite the fact that you are being proactive in avoiding bankruptcy, just step back and get ready for the next phase.

If you have done all you can do and debt remains, call a loan consolidation company. If you can find a company that offers a low interest loan and debt counseling to prevent future problems, you are getting somewhere. There are debt consolidation companies offering to talk to your creditors to lower or take debt off your report. They add remaining debt together and offer to deal with these payments for you. The idea is that you pay them one monthly fee plus a payment that covers the rest of your debt. If they did indeed get much of your debt cleared, this option may be beneficial.

Some find that taking second jobs, ridding the budget of unnecessary spending, and destroying credit cards can help get them back on the right track. If possible, pay more than the minimum amount due on the consolidation loan, as lower interest rate loans have longer payment terms. If you have tried all of the above and still find that making ends meet is impossible, your only choice may be a declaration of bankruptcy.