Are you upside down in your mortgage and do not know how to deal with it? Are your credit card bills mounting with high finance charges and late fees? Is your stress meter pretty much pegged? We are all facing moderate to severe financial challenges in this economy. Most of us have moderate to high levels of credit card debt. As of September 2009, Americans owed $917 billion in credit card debt with $69 billion of that amount past due, according to the Federal Reserve statistics.

But why do you need a good credit score? If you need to purchase a house or a new car. If you need to get some sort of revolving debt such as a credit card, get a student loan, or get insurance. After you have utilized your credit for these items, does your credit score do you any good? No…your credit score is only good when you NEED it to apply for some sort of credit-related issue.

Step back and evaluate your financial position at your current state and then project how you see it evolving over the next 2-3 years at your current pace. Can you resolve your financial issues during that time frame? Does it make sense? This is tough, but be unemotional about it. Consider your options:

1.] Continue to struggle
2.] Debt consolidation
3.] Debt reduction
4.] Stop paying and allow the debt to go to collection
5.] Bankruptcy

These are choices you can make. Obviously, bankruptcy creates the most long-term problems with respect to your credit rating, but sometimes it is the best choice. Debt reduction and consolidation can often times reduce your debt by as much as 50%. These are some options to consider.

Your credit can be repaired rather quickly depending on the number of derogatories. However, most credit problems can be repaired and removed with in 2-3 years. You have options. Planning the next 3-4 years strategically can not only reduce your financial stress level, but it might save you a significant amount of money. Stop allowing debt to control you. Empower your financial future and decrease your stress level. Consult your accountant and a debt reduction specialist to see if these are good options for your situation.