With the current economic crisis, credit card bankruptcy is becoming more and more common. Unemployment is at a high, and those out of work must turn to credit cards to pay bills and buy basic necessities. Some may think there is no end in sight and turn to bankruptcy. However, bankruptcy should only be considered as a last resort. Although it will eliminate credit card debt, it will show up on a credit report for 10 years and make it very difficult to obtain new credit or even employment. (http://www.suite101.com/content/how-to-file-for-credit-card-bankruptcy-a191875)

Before filing for bankruptcy, consider your financial situation. How much debt do you owe? Are you employed? Do you have any money saved for a rainy day? Can the debt be paid off over time? Are you barely able to afford the monthly minimum payment? Your answers to these questions will determine what other options are available to you.

Consider these self-help options before turning to a bankruptcy lawyer:

- Manage a budget: Even if you’re not having a financial crisis, it’s always a good idea to be able to create and stick to a budget. You’ll see where your money goes and in what areas you can reduce unnecessary expenses. You’ll need to list all sources of income, then fixed expenses and those that are variable. If you spend more than you make, then you’re living beyond your means and may need to seek credit counseling.

- Contact creditors: If you’re consistently behind on your credit card payments, contact them and let them know about your situation. They may be able to come up with a modified payment plan that will allow you to make smaller payments.

- Prioritize importance of debts: Debts are either secured or unsecured. Secured loans are usually based on assets, such as houses and automobiles. These are the most important debts to pay because failure to make timely payments can result in repossession of these items. Credit card debt is almost always unsecured, so although creditors may harass you about your credit card debt, they can’t take any assets away from you if you can’t pay. (http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre19.shtm)

If sticking to a budget or attempting to work out a plan with creditors does not work, your next step would be to seek credit counseling. Credit counselors work with customers to help remedy their financial situations. However, be wary of these, since many are not legitimate and charge high fees, adding more debt for customers to deal with. (http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre19.shtm)

The effects of credit card bankruptcy are long-lasting. Be sure to research your options and try to find a way to budget your expenses before resorting to such a decision.