Are you thinking about filing for credit card bankruptcy?  You’re not the only one. Thousands of Americans have already done it at this point.  It is not surprising especially after what has happened to our economy.  Bankruptcy is deemed by many as their only way out.

But, before you file for credit card bankruptcy, there are some things that you might have not considered yet.

Here’s what you should do to make certain that credit card bankruptcy is indeed your only way out:

List down all of your monthly expenses on a spreadsheet; do not leave a single cent out.  These expenses will include basic necessities; not so necessary items such as vacations, impulse shopping and the like; and of course a complete list of your credit card bills and other loans.  If there are unnecessary expenditures, take those out of the equation and see if you will be able to pay the minimum requirement of your credit card bills without them.  If you can, then you can still avoid credit card bankruptcy.  Cutting down on movies, eating out, short recreational trips can be your simple way out of financial destruction.

Next, make a budget for the monthly expenses of necessities, including basics such as food, shelter, transportation and utilities.  Take your mobile phone bills for example.  In the past, people could live without cell phones, but right now it is understandable why people feel naked leaving the house without it.  You don’t have to get rid of your cell phone, but you might want to look into reducing your monthly plan.  Cable TV, which is also seen by many as a necessity, is another thing that you can certainly live without.  Paying your credit card instead of cable TV bills will surely help you get into a more stable financial situation no matter how you look at it.  Simply put, reevaluate what you or your family think are necessary.  Cut down or eliminate these expenses to be able to pay for your credit card bills and avoid credit card bankruptcy altogether.

Look into your properties such as your home, cars, or even valuable items such as jewelry or collectibles.  You can get a loan using these as collateral to pay off your credit card bills, or at least a part of it.  You might also want to consider selling them altogether.  Living in a practical and economical manner is definitely a wiser decision than filing for credit card bankruptcy.

Credit card bankruptcy is often regarded as an easy way out of debt.  But take note that doing so will have a very unfavorable long-term effect on your credit standing.  There’s also a social stigma that comes along with it.  So before you make that decision, look over your other options thoroughly first.