Help, I'm up to my ears in debt!

You have too many debts when:

• You always have problems making credit card payments;
• You are late paying back loans;
• You regularly use your line of credit to "finance" basic expenses like groceries and rent.

Recognizing that you have too many debts is already a step in the right direction.

When in doubt, take the time to make a budget and determine your net monthly income minus expenses. With this information, you can determine if your situation is insurmountable or simply a minor money management problem.

For minor problems, the advisor at your financial institution can definitely help you. If it is a little more serious, he/she may recommend more draconian measures such as consolidating debts.

If the problem is extremely serious, it is best to be open and honest with your advisor, who may suggest corrective measures. The worst thing to do is to try to cover up the seriousness of the situation. The institution has more to lose if you declare bankruptcy. It is in their interest to help you get your financial affairs back in order. The advisor will listen to you attentively and help you work out a solution.