Many people go through the situation youre experiencing now almost everyone at least once in their lives. There are many unexpected circumstances that may arise and compromise your financial position. Dont despair, it can be overcome, it requires discipline and a bit of sacrifice but youll get peace of mind in return and its worth it.

Prepare a Budget
First of all you need to prepare a budget; you need to state your income and your expenses. This is for you to know how much money youll be able to destine to eliminate debt, so dont conceal anything, be honest with yourself.

Contact your creditors
Now without exaggeration, its time to be honest with your creditors, tell them youre having trouble breaking even, and agree to a new and more flexible repayment program. They wont have a problem with extending the repayment periods and consequently lowering the monthly payments. You could even get a cut on your debts principal if you are good at bargaining. Remember that if you have to face bankruptcy, you wont be the only one loosing money. Thus, the lenders will accept any reasonable offer that you make to them. Be prepared for some bargaining on their side too.

Consolidate your debt
You can also get a consolidation loan, this kind of loans are specially designed for those in your situation, with the amount of money youll get from this loan youll need to cancel all your debts, this way youll end up with a single monthly payment with fewer interests. Consolidation loans are not so hard to get, there are many lenders willing to approve loans for people with bad credit, no credit and even bankruptcy. So whatever your financial situation is, if you want to consolidate and get a single monthly payment, you should search for a consolidation loan lender.

Search Online
Consolidation loans are the best way to reduce your debt and get a fresh start, in order to find the best terms available, search online for loan quotes. There are sites that offer access to many lenders dealing with this kind of loans and youll be able to compare the terms and get a great deal. When requesting loan quotes read all the information carefully and watch the fine print closely so you dont miss any hidden fees that can turn the loan more onerous than it seems.