If you don’t have the money to handle your credit card debt, first call your credit card company and try and work out an arrangement that is both affordable for you and reasonable to them.  If this is impossible you have three options.

The first is debt management and should be considered if you are barely able to make the minimum payment on your credit card account.  If you opt for debt management, your card issuer will close your account and reduce your fees and/or the APR.  Debt management will also have a marginally negative impact on your credit.

The next is debt settlement, which is a bit more risky.  When you choose credit card debt settlement, you withhold payments from your credit card companies, intentionally defaulting on your account.  Doing this will destroy your credit score, but it’s done with the hope that, at some point your credit card issuers will be willing to settle for much less than what you currently owe them.

Bankruptcy is the most severe option.  Consumers should only consider bankruptcy if they find it impossible to make the minimum payments on their credit card accounts, and are facing other significant amounts of debt.  If you go this route, remember that bankruptcy will destroy your credit score, and it will stay on your credit report for up to ten years.