Finding yourself with unmanagable debt is very easy to do. Banks and finance companies advertise agressively for your business, tempting you with loans and credit card deals that almost guaranteeing instant gratification. Buy now, pay later deals are as popular as ever but rarely do they mention the interest rates other than in the fine print. It's alarmingly common how many people enter into contracts without knowing exactly how much debt they are committing themselves to. Also common are those letters from the banks saying "congratulations, you now qualify for an automatic credit card increase…" as if you had won a competition.Consumer's are no match these days for multi-million dollar marketing campaigns people to get a credit card and buy the things they want. Be warned though, whilst these offers are tempting, they may ultimately be the cause of financial distress and unmanageable debt.At Debt Fix, we speak to hundreds of people every week struggling to manage their debts. Nobody plans to have unmanageable debt but it’s an all too common and tragic tale. First, the consumer is seduced buy credit cards, personal loans or that new mobile phone deal and they cant resist themselves. Then the debts accrue, all reaching their credit limits, but everything is fine because the minimum monthly payments are still being made. After this, something unexpected happens like an accident at work, a relationship breakdown or there's a car accident. The next thing is, "…Help, I can't pay my debts!..."

When this happens, you have a choice. You can ignore the problem and hope that it goes away or, you can be pro-active and address the problem head on, taking control of the situation. Debt Fix recommends the latter approach as the preferred method of addressing the problem. In previous articles, we've written about speaking with creditors and working with them to find a solution.

Depending on the situation, your creditor's will listen to you and help you make an arrangement to pay off your debt. "Payment Plans" (or paying a set amount of money over a period of time to pay the debt off) are a common way deal with debt. Believe it or not, creditors would prefer to keep the debt "in house" rather than send the debts off to collection agent because it makes commercial sence for them to do so.

Sometimes, payment plans are not possible because the creditor will only accept an amount of money that is beyond your means. In this case, perhaps a debt consolidation plan is the answer.

Debt consolidation is a powerful way to manage bad debt because it collects the debts into one, affordable payment. There are many ways to consolidate bad debt, including personal loan, informal management plans, property refinace and debt agreements. Depending on your situation, you may qualify for a debt consolidation and this may provide the best solution.