As discussed previously, there are strategies to managing your debt in an efficient manner. The trick is to prioritize those debts that are more caustic over those that are more manageable. The previous post suggested that you focus on the necessities and legal obligations. These are the expenses that you cannot avoid. You need to set aside money for food and shelter and you cannot avoid child support obligations. Once you get those expenses and debts under control, then you can focus on your loans. This post will review which loans you should focus on first.

Start by paying off your high-interest loans, like credit cards and personal loans. These debts, like credit cards, often have late fees, penalties and associated interest. This makes them very dangerous and difficult to pay off.

If you have some spare cash on hand then you can offer to make the bank a lump sum in exchange for a reduction in the principle. Most banks are willing to work with you, if you make an honest effort to get your debt under control. But keep in mind that if part of your debt is forgiven, it could be subject to income tax.

You can also try consolidating your loans. What this essentially means is that you take out a lower interest loan to pay off your high interest debts. Many people accomplish this by pulling equity out of their house and using that to pay off credit card debt all at once.

Finally, once you map out a strategy to handle your high-interest loans ? turn your attention to your deferred loans. Deferred loans are generally your mortgage and student loans. These are huge loans that are subject to low-interest rates. You can pay these off last because they are the most flexible of your loans.

Divorce and bankruptcy, unfortunately, often go hand in hand. Many couples that file for divorce also end up in bankruptcy or, at the very least, under financial strain. In these circumstances you don’t have to handle it alone. Bankruptcy is an option but it may not be the only option. A bankruptcy attorney can go over your options and advise you on the best course of action to manage your debts.