The changes that went into effect back in 2005 altering U.S. bankruptcy laws now means unsecured credit card debt is much, much harder to flush away with a simple Chapter 13 wage-earner's personal bankruptcy filing. But this looming danger hasn't stopped the majority of Americans from applying for those "free" credit card offers that flood their mailbox.

The problem, it seems to me, is that all too many people have either
(1) never learned or
(2) have forgotten how to manage credit card debt properly.

Because of these two things, they are hopelessly digging themselves into a deep hole of debt that is difficult to climb out of financially.

But it's never an IMPOSSIBLE climb! You CAN start taking control of your finances by developing getting good credit habits: learning how to track your monthly expenses, cutting unneccessary bills, and starting your own personal debt consolidation program yourself.

The first step to taking back control of your financial future is seeking help. I highly recommend that you check out Dave Ramsey's website and books on credit and debt to learn the truth about bankruptcy, as his writing really can help people come to grips with their own financial failures. I've witnessed how his helpful, real-world solutions have helped people recover financially -- and in the process, they reclaim their own self-esteem. You simply can't go wrong with any of Dave Ramsey's books or DVD's.

The second step is to learn how to budget your finances. You must set time aside every week to track your spending, develop a realistic budget that fits your goals and lifestyle, and make the time to open all your mail, check your monthly statements, write out your checks, put them into envelopes for mailing, balance your checkbook... on and on, until dealing with your debts becomes an ingrained habit. The secret is to put a renewed focus on your bills, not avoid them one minute longer. Making an appointment with yourself at the same time, every week without fail, to deal with your debts, can help you gain a sense of control over your out-of-control financial lifesyle. Eventually, you will come to realize that your bills have too much power over you and you will take the proper steps to start eliminating them from your life.

The third step is to STOP using credit as a crutch. Too much consumer debt will limit your options to enjoy a happy life. If you can't afford something at the moment, then don't pretend you do have the money by pulling out your credit card to buy it. Accept your current income as your financial boundary, and live within the fences. Read our article on credit card traps to avoid to understand how important it is to always read the fine print on credit card agreements. Further, don't fall victim to digging yourself into a hole using payday loans. Do whatever you have to do to avoid the payday loan trap that all-too-many payday loan companies operate.