Debt is never easy. If you're buried under an overwhelming credit card debt or can't make your mortgage payment, the words "debt relief" may sound impossible. In reality, you can escape debt through a variety of means, including bankruptcy, bankruptcy alternatives, and foreclosure defense. Depending on the unique circumstance surrounding your financial situation, you may be able to solve your debt problem by creating a simple financial plan.

If you're facing debt from several sources, you may wonder: Which debt should I pay off first?

First, remember to pay for necessities. This could refer to different costs for different households, depending on their type of debt and the amount owed to each lender. Some financial advisors recommend only paying the minimum amount on your house, car, and utility payments while focusing credit card debt. This is because most credit cards accrue interest at a higher rate than your mortgage, etc.

• If you are unable to make the minimum payments on your house and other necessities, speak with an attorney to discuss your options. Bankruptcy may be the best debt relief option for you.

After making payments on your necessary debts (house, car, etc.), fulfill your legal obligations. This includes child support, alimony, and taxes. Fulfilling your legal debts is very important; even bankruptcy cannot eliminate some of these expenses. Because of this, your lenders may be able to work out a payment plan for you to fulfill these obligations. If you fail to take any action regarding these debts, you could suffer wage garnishment and incarceration.

Finally, organize the rest of your debts by interest rate, starting with the highest rates. Focus on each of these debts, starting with debts that have the highest interest rate and moving down the list. For many consumers, this means starting with credit card debt. In some cases, credit card debt can involve 20% or 30% interest. If you are unable to pay off an entire debt, put as much money toward it as you can.

Once you pay off a credit card, cancel it and move to the next financial obligation.

Once your credit card payments are under control, begin putting your money toward deferred loans, such as student loans. Although bankruptcy cannot usually eliminate student debt, lenders are usually willing to work out some type of repayment plan. During this time, the loan could collect interest, but the interest rate will most likely be less than a credit card.

If you live in the Saint Peters area, speak to a bankruptcy lawyer from the Adams Law Group. We are well-versed in bankruptcy law, including Chapter 7 and Chapter 13 bankruptcy. For a free case evaluation, call our office at (636) 397-4744 and speak with a qualified Saint Peters bankruptcy attorney. You can also fill out an online form at your convenience when you click here.