What about Bankruptcy?
You may feel your debt is overwhelming and bankruptcy is the only way out. Or, you may feel it is the easiest way to start over. Bankruptcy may be your best option, but it is something to consider carefully. A recent study by the University of Michigan found that erasing debt in bankruptcy is vastly under used by consumers in debt. To learn more about consumer bankruptcy we recommend this excellent site.

Before filing you must make sure for one that the kinds of debts that you owe are dischargeable (i.e. eliminated or erased by the bankruptcy). For example, if you used the equity in your house as collateral for a loan, the loan may not be eliminated in bankruptcy.

Credit card debt is typically erased after a successful bankruptcy. Another concern of course is your credit rating, however if your credit is already quite bad, filing bankruptcy may actually improve your credit rating. This is because after filing you will have less debt and can't file again for 6-7 years, both of which make you a better credit risk.