You graduated college, got a great job and started living the life you'd dreamed of. Unfortunately, the market turned and you had to take a cut in pay. Now you're deep in debt and you see no end in sight.

While bankruptcy may seem like the logical solution to your debt problems, there may be some options you haven't considered. Here are a few steps to try before you resort to bankruptcy protection.

Make a Realistic Budget

The first thing you need to do is sit down and create a realistic budget--you need to cut out all the extras you can no longer afford. For example, you may be used to going out to dinner three times a week and using a cleaning service for all your laundry.

While that may have worked before you were in debt, those funds could be used to pay off some debt. Don't feel that you have to completely deprive yourself of a night out once in a while. But instead of eating out every night, cut back to one or two nights a week. If you're used to extravagant restaurants, find a few less expensive places. Use the money you save to pay off some of your debts.

Talk to Your Creditors

Creditors don't like to lose money. They know that if you file bankruptcy, they're going to lose out on what you owe them. Call and talk to your creditors as soon as bankruptcy becomes a possibility.

Let them know that you may have to file for bankruptcy if they can't provide you with suitable payment arrangements. They may be willing to renegotiate your contract, or reduce your payments so that you can avoid bankruptcy.

Pay Down Credit Cards

If you have credit cards that will be included in a bankruptcy, try to pay those down. Once you have the balances down to a manageable amount, transfer the amounts to one credit card. This will reduce the size of the payments and allow you to maintain your credit. If you're trying to rebuild your credit, don't close your credit cards. It's better to keep cards with a zero balance than to close the accounts.

Before you file for bankruptcy, you should investigate every other option that might be available to you. The options provided above may be able to help you avoid the damaging effects of bankruptcy. If all other options have failed, be sure to speak to a bankruptcy attorney as soon as possible.