With economic slowdown and rise in unemployment rate caused record number of bankruptcy filings over past few years. But one question I always face from my clients, who are depressed with financial situation, is the bankruptcy a right choice for me to get rid of debt? So you are also struggling financially and believe that bankruptcy is the only alternative you have to get rid of calls from creditors and wipe out the debt. May be, but it has many consequences that effect your quality of life and you should do everything possible to avoid personal bankruptcy. Filing bankruptcy many give you relief from short term problems but it will show tremendous impact on your future credit. I notice that every one want quick relief to problems, for this reason they consider bankruptcy as a solution to the problem. Here are the few tips to avoid bankruptcy and save your future credit. Budgeting: it is basic step that every individual who notices that his finance is going out of control. It is important that every family should have some type of budgeting in effect to avoid conditions leading to file bankruptcy. Many people do not keep track of where and how they are spending money. In order to keep control of your finance, one should keep track of finance carefully and cut expenses which are not important. Use of credit cards has increased recently through which consumers are paying today from tomorrow’s money. This is where many people finance is going out of control. Start living with the cash available with you by purchasing only necessities and avoiding wants. Thereby, it will prevent you from overspending on things that you really have no need. However, if you are not able to keep control of your finance, then better consult credit counselling service before you make a decision to file bankruptcy. Seek their help as they can work out with your creditors to reduce your monthly payments or interest rates on your credit cards. It is important to seek credit counselling services because even if you want to file bankruptcy that a credit counsellor must certify your case that there is no hope to pay off the debt with the income you are receiving. Debt consolidation: it is other way that you can avoid filing bankruptcy. It is a process of taking a new loan to pay off the existing debt and putting them all into one loan that will usually with lower rate of interest and lower monthly payments according to your monthly income and expenditure. The benefits you reap with debt consolidation loan will depend on the type of Service Company you deal with. There are many debt consolidation companies like crditcardbankruptcysolutions.com that will provide you relief that you are looking for relief. These are some of the best tips that help you in avoiding bankruptcy, if they do not seem to work out for you, best you consult bankruptcy attorney to get best advice for your present situation.