Often, when consumers amass large amounts of debt they feel there is no way to relieve the burden. The weight of unpaid bills and overdue balances becomes unbearable, leaving them with seemingly only one option – bankruptcy. However, even if dealing with very large amounts of debt, there are some simple things you can do to cut expenses, increase savings and better manage your money.

1. Make meals to save money. Eating out is exponentially more expensive per serving than doing your own grocery shopping and preparing meals at home. In fact, a study done by The Simple Dollar gives a great picture of just how much money can be saved eating in versus dining out.
2. Pay yourself first. The best way to get out of debt and stay that way is to start a simple, consistent savings plan. Ideally, you’ll want to have at least three months’ expenses saved up at all times, but start slow and work your way up. Before you know it, you’ll have a little cushion to help cover unexpected expenses.
3. Create a budget – and stick to it. Track your income and expenditures for a whole month, down to the last penny. How much did you spend on necessities – like mortgage, car payments and groceries – versus luxuries, like nights out, wardrobe additions and entertainment venues? Use an online budget calculator to help better manage your money, and remember the old adage “If you fail to plan, you can plan to fail.”

There are a number of professional resources out there to help you better manage your money and avoid bankruptcy. Depending on your debt level, credit counseling, debt consolidation or debt settlement may be a viable option to get your finances out of the red and into the black.

This week Fox Business News posted a story about options for those facing large amounts of debt titled “Drowning in Debt? Here’s Some Options.” It provides a good look at three options for dealing with debt – credit counseling, debt settlement and bankruptcy – and highlights the questions consumers should ask before beginning any debt reduction program.

If you’re struggling with large amounts of debt, consider one of these options for getting out of the red and into the black:

• Credit Counseling does not reduce principle balance, only interest and fees. This option is best for consumers not completely overwhelmed by debt and who are looking for a way to better manage their finances. It has the least impact on your credit score, but can take years to complete.
• Debt Settlement is more aggressive than credit counseling and involves a third party negotiating with your creditor to reduce the principle amount owed. This is a great option for those looking to avoid bankruptcy at all costs. With more impact on your credit score than credit counseling, it is not as damaging as bankruptcy, with typical completion in 18-36 months.
• Bankruptcy, while scary, is sometimes the only choice a consumer has to get out of debt. Consumers shouldn’t let fear keep them from doing what’s best for their financial situation. Bankruptcy is best for consumers who have exhausted every option and have no other avenue for paying down their debt. It is the most damaging option for your credit score, lasting up to seven years on your credit report.

If you do choose debt settlement, one way to make sure you’re working with an ethical debt settlement company – and not a predatory “bad actor” – is to ensure they’re associated with and accredited by the United States Organizations for Bankruptcy Alternatives (USOBA) or The Association of Settlement Companies (TASC). These two trade associations hold their members to higher standards of ethics and transparency, with consumer protection in mind.