We’ve all been in financial trouble at one point or another. After all, this economy – when most of us are struggling like never before – has seen the rise in gas prices, food prices, college tuition, and all the rest, but with no significant increase in pay. The money that it costs to live on a daily basis has to come from somewhere and for many us the only option is our credit cards. With credit cards maxed out and minimum payments through the roof – along with all of our other expenses – before long we are facing financial crisis. Bankruptcy may seem like the only alternative when it gets that far.

But as we’ve all been told, bankruptcy is more difficult to declare these days; and besides that, it is a decision that will stay on your credit report for many years to come. Taking back financial control of our lives – before bankruptcy is the only option – can have a much more powerful effect in our life and allow us to clean up our credit report without doing long term damage.

Debt consolidation loans can help to eliminate credit card debt; as can working with a professional that will provide debt negotiation or debt settlement – both methods by which to lower the total amount of the debt owed. But once credit card debt is eliminated, it may be tempting to get another credit card; a dangerous move that can result in the racking up further debt. Instead, an option to consider is the use of secured credit cards.

Secured credit cards are those credit cards that offer a limit that is only within the cardholder’s means. In fact, the credit card holder is only permitted to get a certain credit limit that they must first match in funds that are deposited in a secured savings account. This protects the lender and also allows the cardholder to take baby steps in using credit responsibly.

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