The grim reality of claiming bankruptcy is a double edged sword for most that go through with this legal financial cleansing to get back on track with their lives. On the one hand you will not be receiving those nasty collection calls anymore, and get some much needed breathing room to catch up with your bills, and even have some written off the books of the companies that you owe money. There are however some situations that will come up in the weeks, months, and years following the final court judgment you will have to navigate and explain.

There are a variety of things to think about when considering how to go bankrupt. First of all your bankruptcy ruling will show up on your credit report within a few months of your final court date. This will show potential creditors that you could not handle your personal finances in the past, and they will likely not want to extend new credit. At the same time, beware of credit card offers that show up quickly after claiming financial ruin to the judicial system. The credit card companies want to get you back to where they think you belong, and this deep in debt to them with the highest possible interest rates. Shred these offers as they come to your mailbox immediately.

Do not try to change jobs with a fresh bankruptcy on file as most employers that offer jobs with substantial pay and benefits will put you under an investigative microscope, and may deem you unemployable due to lack of providing fiduciary responsibility on your part. They want to see that you can live within your means, and your paycheck will cover your expenses plus putting a small percentage into savings. Employers also examine these credit reports to see if you are living beyond your financial capability, and will want to see an explanation for that source of extra income.

Homeowners and Automobile insurance rates are greatly affected by low credit scores and other negative impact statements on your credit report. A filing of bankruptcy can raise your insurance rates significantly with your current provider and future insurance companies as well. Raising your deductibles and lowering coverage could help bring your rates back down to an affordable payment. Some states have laws that protect consumers from this form of corporate financial discrimination, and can help you find affordable coverage to prevent the insurance companies from stuffing their coffers with your hard earned money. They will balk, and say that if you are not financially responsible, you are likely to have more claims or accidents.

In this economy, many people have accumulated massive credit card debt. A person gets downsized, (Read laid off) but still has bills to pay. Therefore, they might use a credit card. When the payment comes due on the cards, they cannot pay. The credit card companies love this, because they can legally charge interest that would seemingly choke a loan shark.

How do you avoid this trap, or if you’re already in this trap, how do you reduce your debt and lower your credit card payments? According to the Motley Fool, one of the first things you need to do is stop using that credit card. If you have several, you might want to talk to consider debt consolidation services. You can try talking to your bank, and ask if they offer this service. It is possible you will be able to get a loan to pay off your credit cards, and reduce the payments to one – The loan.

Another option would be to see if it is possible to roll you credit card payments onto one card with a better interest rate. You might be able to reduce your debt load by making one larger payment, rather than several smaller payments.

With laws that went into effect in 2009, credit card companies now have to give consumers a chance to pay their bills before rolling it over to the next cycle. According to the reform, a consumer has to receive the bill 21 days before it is due. Another way you can reduce your credit card debt, is to stay current on your payments for at least six months. If you do so under the new provisions, the companies must lower the payments, if they have raised them for delinquency.

Reducing credit card debt should be one of your primary financial goals. This debt did not appear overnight, and will take time to clear as well. It is kind of like dieting. If you reduce your food intake, and exercise you can lose weight. In the same sense, reduce the intake on your credit card, by paying cash, or with a check whenever possible. Treat you credit card like that emergency twenty you keep in your wallet. Only use it in an emergency. Reducing credit card debt, and lowering you payments is an ongoing concern. The economy will recover, and so can your person finances.

Here is a great video that explains why you need to work diligently to get out from under the burden of credit card debt:

Many individuals experience financial trouble at some point in their lives, and often for reasons that are entirely out of their control. Problems with debt can occur for all kinds of reasons, including accident, job loss, or illness. Fortunately, there are financial products available which can help you get back on track. And if you are a current or former member of the military, you can often get access to even more competitive products that can help you find a constructive way to get out of debt.

Debt consolidation for military personnel (or anyone else in fact) is designed to consolidate all of your debt from a range of sources, into a single loan. Effectively, you take out a loan and use the cash to pay off all of your other debts. This can be particularly useful if you have punitively high interest credit card debts. Military debt consolidation loan programs were set up so that people who have given their time to serve, often in remote or foreign locations, are not forced to live in debt. This makes sense because for many military personnel it is hard to find time to constantly manage finances and it can also be hard to make the adjustment to civilian life later on.

These types of loan are particularly well suited to people who have a strong sense of discipline which will help in making regular payments until the loan is paid off. If you have some assets like a car or other valuables, you can often take out a secured loan which will help even further as you may be able to secure a lower interest rate. Whatever you do, make sure to shop around to find the most competitive loan package, as rates and fees can very significantly. Online sources are particularly useful to compare rates easily across different lenders.