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December 9, 2009

Before Shakira became a global singing phenomenon and one of the most successful young women in the entertainment industry, she had gone through the heartbreak of watching her family go into bankruptcy when she was just 8 years old.

The native of Colombia recently told CNN she still vividly remembers the day when she returned home only to find that her father had sold most of their belongings to cover their business debts.

Still, she credits her parents - who took her to a park where she could see many orphaned children in circumstances that were much worse than her own - with helping her keep things in perspective, survive and ultimately thrive despite the adversity.

"That day I made myself a promise … that I would someday succeed to vindicate my parents' social and economic position," she said, quoted by the news provider.

She never forgot the Colombian orphans either, and went on to fund the Barefoot Foundation, a charity that aims to ensure that "every child can exercise his or her basic right to a quality education," according to its website.

BankruptcyAction.com says that nearly 1.5 million Americans filed for bankruptcy in 2008. However, experts say the borrower and creditor can typically work out a refinancing deal that will help the debtor avoid going under.

Those facing repayments of several loans may also benefit from enlisting the help of reputable companies to consolidate their debt which may result in fewer and smaller installments.

Finally, the best way to avoid debt is to live within one's means, spend less than the household income, and use credit and loans only in emergency situations.

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