There are several alternatives to dealing with a large amount of debt. One is to increase household income and dedicate it to debt repayment. For example, a one-earner household could become a two-earner household, or one or more working spouses could take on a second job or work overtime.

A second strategy is to follow a PowerPay program where the amount freed up from repaid debts is added to the payment owed to remaining creditors. See www.powerpay.org for details.

A third strategy is to contact a nonprofit credit counseling agency and enter a debt repayment plan. The counseling agency may be able to negotiate some price concessions from creditors such as lower interest rates and waived fees. With a debt repayment plan, expect to make a monthly payment to the counseling agency that is prorated among your creditors. To find a nonprofit credit counseling agency in your area, visit the Web site of the National Foundation for Credit Counseling at www.nfcc.org.

A fourth option, usually seen as a last resort, is bankruptcy. In this situation, a lawyer will quote an hourly rate (e.g., $200 an hour) or a flat rate for legal services and will generally want payment up front so as not to be added to a debtor's list of unsecured creditors. This is to be expected.

We would like your feedback on this Personal Finance Frequently Asked Question.