No matter how deep your debts are, there are always debt solutions around. So don’t even think of filing for bankruptcy as this is not a favorable solution at all. In fact, doing so will only hurt your credit rating. Remember, your goal should not be to get out of debt at whatever cost, but to become debt free without sacrificing your credibility.
The first thing you may want to do is to use your savings to pay your debts. This may seem drastic. After all, it must have taken you years to save up, and you are actually quite satisfied that the amount you have in the bank is earning interest. Then again, it does not make a lot of sense to be earning a few dollars a year when you have to deal with thousands in interest alone. So it would seem wiser to withdraw your savings and use them to pay off your debts, if not, at least reduce them.
In the meantime, you should also try to go for debt settlement. There are debt settlement companies that have trained and experienced personnel who can negotiate successfully with your creditors, eventually, reducing your credit card loan balance to as much as 50%.
Another means to manage your debts is through debt consolidation. If you have a real estate property, you can offer this as security so you will be granted a loan in the amount that would be sufficient enough to pay off all your debts. The important thing here is never to miss any payments because aside from the fact that credit bureaus will take notice of this, you could end up losing your home as well.
You should take advantage of credit counseling services as these can help you understand your situation, make a budget plan, and explore all possible options to help you get rid of your debts and start life anew.