Naturally, others see this pattern and try to exploit it. The internet today is full of advertisements and websites which boast of having the ability to rid you of your debt legally without paying any money to your creditors. They offer various documents that try to make use of loopholes in the Federal Reserve System to eliminate your debt. Because of this, the government will be obliged to see to it that your claim is true. You will also not be able to touch your assets, since you technically do not own anything. This is the reason why declaring bankruptcy should be the last resort in business debt elimination. What are the implications of declaring bankruptcy? But then how about paying for your dues? Isn't it such a tasking endeavor for you? If you only know how to avoid compounding your balances, you will surely be free from worries such as this. Do not add more to your existing debt. It is best that you only use your credit card for emergency purposes such as you run out of cash and the likes. Since the common theme of the internet is anonymity, there's actually no way to tell if an expert is truly an expert. If you go to the wrong website, you might end up getting and following some very bad advice. 3) Debt elimination companies - Many companies today offer credit card debt elimination information. You need to just put down those credit cards and walk away. Do not kid yourself by saying, "but I can do that anytime I want to". The fact is, the attitude of "shop-now-worry-later" brought about by credit cards can be addicting. If you do not put those away now, you might never be able to. This means that the next debt will be accorded the following amounts: a) The minimum payment for the debt b) The minimum payment for the previous debt c) The extra amount that you can afford As you can see, the budgeted amount for each debt increases as each debt is paid off. This means that you will be able to pay off larger debts much faster; hence, the "snowball" effect.