Hello and welcome to Money Girls Quick and Dirty Tips for a richer life.

I'm your host Laura Adams. In today's show I'll share tips for managing debt in our current

financial environment. Everyone's on the edge of their seats about the current credit crisis and the volatile financial markets.

As the economy has declined, many consumers have been relying on credit sources such as credit cards and home equity loans for everyday spending.

But we've come to realize that the days of free-flowing credit are over.

Banks and lenders are lowering credit limits on credit cards and scrutinizing new borrowers under their dusty microscopes.

For many, this tight credit market will be the catalyst to address financial problems sooner rather than later.

If you've been living above your means addicted to credit of any kind, consider this

podcast your personal financial intervention.

Debt management is not a one-size-fits-all topic because every debt holder is unique.

Your debt could be the result of many different circumstances, such as overspending, job loss, or medical bills.

You have to gauge your own situation and face up to your ability or inability to help yourself.

If you're seriously drowning in debt, the worst case scenario is to declare bankruptcy.

This is the debt management option of last resort.

Because a bankruptcy can stay on your credit report for up to 10 years,

it will affect many aspects of your life for a long time. If you're considering this option,

you'll need to consult a bankruptcy attorney for help with some tough

decisions. Anyone who intends to declare bankruptcy must get pre-filing

credit counseling from an approved agency within six months before the filing.

The agency must be approved by the U.S. Department of Justice, in the judicial district where

you plan to file bankruptcy. You must also complete a pre-discharge education

course in order for debts to be officially satisfied. If you're not considering bankruptcy

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