Many people face overwhelming debts and an ever dwindling income. Sometimes, the last option to the situation is to declare bankruptcy. However, this is not a good option as it can have a long-term effect on your credit rating. Before you consider filing for bankruptcy, consider other options for getting out of debt. Trying an alternate route will leave your financial profile in better shape.

Here are some ideas of what you can do:

Get a Second Job

A second job can go a long way in getting out of debt. Although it means sacrificing some of your free time, the additional money you can get will help get you out of trouble with your creditors. Hopefully, the situation will not take too long and you will be able to go back to a normal life. Once you find financial relief, you can quit the second job and reclaim your life. The sacrifice you make during your hardships can go a long way in preventing you from filing bankruptcy.

Cut Off your Luxuries

In a financial crisis, the best way to avoid the accumulation of more financial responsibilities and getting out of debt is to cut down on all your unnecessary items. Refrain from going to your favorite stores if you cannot resist the temptation of buying and swiping your credit card. Teach yourself to appreciate and use what you have and pretty soon, you will find yourself debt free! In addition to cutting back on shopping for extras, you will find if you prepare and cook your own food instead of buying from restaurants you will save a lot. The extra money you will save may be enough to pay off some of your bills.

Sell your Extras

You can generate a lot of money from selling the extra stuff in your house. If you have two cars, you can sell one and use the proceeds to cover up your obligations. Check your closet for clothes that you seldom use. Go to your storage room and you might see stuff that others can still use. Have a garage sale or list them on auction sites. If you choose to go with an online auction, make sure you have the buyer pay shipping costs. You don't want your profits gobbled up by shipping!

Negotiate with your Lenders

Another way to getting out of debt without declaring bankruptcy is negotiating with your creditors. Arrange different options for payment or ask for an reduction in the interest rate. Many credit card companies offer alternatives to help you get out of debt. However, be aware that they can cancel your cards as a consequence of the negotiation. But if you are trying to get out of debt you shouldn't be using the cards anyway.

Bankruptcy is not the only option you have. Look at your financial situation and try to find other options before you take the plunge into filing. You will probably find a suitable option that will be better in the long run.