I joke about filing for bankruptcy, but actually have experienced it almost-first-hand: I worked for a bankruptcy attorney for 2 years. It seemed I saw people at the worst point of their lives, but as I've said after working for attorneys for many years, "If everyone was rich and happy, no one would need an attorney."

We seriously had a Kleenex budget, because many times we had people crying in the office over their decision. There were straight-up dumbos whose logic was, "I have credit cards I can't pay, so to feel better I'll go shopping!" One couple who made really decent money (over $100K/year) had almost $300K in credit cards and loans. But a lot of people were there for normal bad luck -- divorce, where one person gets stuck with a house payment they can't afford on their own; illness; losing their job; people who owned their own businesses mixing their personal finances up with the business.

It drives me crazy, especially with this new "bankruptcy reform," that the general consensus is that people who file for bankruptcy are deadbeats and abuse the system by filing over and over. As I saw it, the system was in fact working fine, with honest judges and attorneys who wanted to be fair to everyone, including the creditors. The attorney I worked for flat-out refused to represent people whom she suspected were lying to her. She was one of the top bankruptcy attorneys in the city, and there was no way she was putting her license and reputation on the line for anyone.

What I learned was to be very diligent with our own finances:

--Pay important bills in full every month. Mortgage/rent, utilities, car payment & insurance.

--Everything else like credit cards that can't be paid in full, pay as much as possible. "Minimum amounts" are for suckers.

--If you can't pay off something in one month, try to pay it off the next month. Seriously. If that means less going out, less concerts or movies, do it and catch up.

--Pay everything early, not late. Creditors luuuuvs when you pay late, even one day, because not only do they get their money but they have the excuse to charge $25-45! Because you're one day late? Nah, man.

--If you don't like an interest rate, change it. If the mortgage is too high, you can refinance after a couple years if you've been good with payments. Credit cards, call them and ask for a lower rate. If not, use one of those 0% interest for 6 months offers with someone else. And keep track of the due dates too -- if it's no interest until June, pay it off or transfer by June.

Anyway, I'm going on and on. The point is, take control! Power to the people!