• There are several methods to handle your debt.three credit cards image by Aleksandr Ugorenkov from Fotolia.com
  
  If you're dealing with debt that is severely impacting your financial well-being, you may be looking for some form of relief. While bankruptcy may be an option you're considering, it should only be entered into as a last resort. To handle your debt without filing for bankruptcy, several other options may be worth exploring first.
  
  

Borrow from Savings

• While you may not want to deplete your savings, having money stashed away may do you little good, especially if the interest it is earning is less than the interest rate on your debt. By taking from your savings to reduce your debt, you can reduce it more quickly. In the worst-case scenario, you can always use your credit cards to cover emergency situations.
  
  

Borrow from Life Insurance

• If you've owned permanent life insurance plans such as whole life or universal life for several years, there's a good chance that you've built up a fair amount of cash value. You can take some of this cash value in the form of a low-interest loan which you can use to reduce your debt. Although you're not obligated to repay the loan, it's important to note that any unpaid loan amount plus interest will be deducted from the policy's face amount at the time of your death.
  
  

Pay Off High-Interest Cards First

• If you have balances on several credit cards, use all available resources to pay down the one with the highest interest rate while paying the minimum required monthly payment on the rest. When the first card is paid off, repeat the process with the card with the next-highest rate. Continue the process until all your cards have been paid off.
  
  

Home Equity Loan

• A home equity loan allows you to borrow against the equity in your home, usually at a relatively low interest rate. Use the money to pay of high-interest debt, such as credit cards. This serves to lower the overall rate of interest on your debt as well as providing for one lower monthly payment.
  
  

Renegotiate

• Attempt to renegotiate the terms of your agreements with your creditors. Explain to them that your financial situation is dire. They may be willing to lower your interest rate and set up a more manageable repayment plan. Your creditors have nothing to gain if you file bankruptcy, so they're more likely to take something instead of nothing.