Is it getting harder and harder for you to meet your financial obligations each month? Do the balances on your high-interest credit cards just keep getting higher and higher? If so, you may think that the situation is overwhelming, and sometimes it can feel like there is no way out.

The truth is that this situation has led many to file bankruptcy. In fact, bankruptcy filings are at an all-time high, which has forced legislatures to review the leniency of bankruptcy laws. Yes, the laws are changing, and for many, bankruptcy is not an option anymore. But was it ever really a good option?

Bankruptcy has always been and should always continue to be the last resort used to solve financial problems. Bankruptcy leaves a stain on your good name and credit that does not go away quickly.

But what can you do when you are faced with high debt and are struggling to make ends meet? The answer could be as simple as debt consolidation . Consolidating your debts can not only lower your monthly financial obligations it can also help you get out of debt quicker by lowering your interest payments.

Think about it this way. A credit card that carries a 29 percent interest rate can cost you nearly $50 in interest each month if you carry a small balance of only $2,000. And most credit card companies figure your minimum monthly charge by calculating the interest and tacking on just 1 percent of your principle balance owed. If you can only make your minimum payments, you could end up wasting thousands of dollars in interest charges.

A debt consolidation loan combines all of your high-interest credit into one account with a much lower interest rate and it even lowers your principle payments owed each month. That means that you could have a few hundred dollars or more a month after consolidation that you had before it.

A consolidation loan also allows you to pay off your debt quicker by allocating more of your hard-earned dollars to pay off your balances. With all of this going in your favor, you could eliminate the strain associated with high debt immediately and find yourself debt-free sooner than you realize.

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