The prudent thing to do, of course, is to begin looking for a way to stay afloat. That's where debt management comes in. Options for debt management might include:

- Enlisting the services of a debt consolidation company to help you create a manageable payment plan that is acceptable to both you and your creditors,

- If you still have a few chits you can call in with your bank, or with a good friend/family member's help, you can apply for a loan that will cover your consolidated debts,

- Consider the possibility of taking an IVA, or individual voluntary agreement.

These are only a few of the options available, and they each have their pros and cons. Naturally, the option that is best for you depends on the circumstances surrounding your personal situation; what works for one person will not necessarily be applicable or feasible for the next person.

Some factors you should weigh when choosing your debt management plan include: what type of debts do you owe, how much do you owe, and to whom. A good financial advisor can help you wade through the whole mucked-up mess of your financial situation, determine where you stand, and figure out which road will lead you to financial freedom.

For many people, the most common and effective means of getting rid of debt is to adopt a debt management plan. This service, offered by debt consolidation companies and some banks or financial institutions, usually requires you to have a pre-defined minimum amount of debt, owed to three or more separate creditors, or has other similar criteria to be met before you can qualify for assistance.

You begin this process by meeting with a financial advisor and reviewing your personal financial profile, which is comprised of documents such as net income, employment paystubs, bank statements, liabilities, investment ventures, balance statements, tax returns, recurring monthly bills, etc. Once an accurate assessment is obtained, the advisor uses this information to negotiate a workable payment plan with your creditors. Upon reaching acceptable terms for reduced monthly payments (based on your ability to pay), you remit one lump-sum payment to your advisor a month, which will be distributed to your creditors as agreed. This schedule will be followed until the debt has been disbursed, or until you notify your advisor of a change in your circumstances that affects your ability to pay.

Also there is an IVA, or individual voluntary arrangement, which involves enlisting the help of an insolvency practitioner to form an agreement with your creditors to pay within a set time frame, usually defined as five years. At the end of the given time limit, the IVA is considered to have matured, or expired, and any remaining debt owed is forfeited by the creditors, and you are released from all obligation.

Sounds too good to be true? Of course it is! Your creditors aren't dummies, and they're not letting you off the hook out of the goodness of their hearts-the downside is that you would probably be required to "volunteer" the titles to your car and/or home as collateral, which means that they could be sold under certain circumstances as partial payment to cover their "assets", in case you somehow manage to break the agreement. Also, IVA's are reported to the major credit bureaus, and will show up as an adverse account for the entire length of time it is active. This may make it difficult for you to get approved for credit in the future, even after you have resolved the debt.

I'm never said it would be easy to dig yourself out of that quicksand-filled hole of debt, but the key is to make an effort, and grab for any vine that is available. It will take time, but eventually, you'll make it out, and you will finally be free!