Q. I have a 750 credit score and no delinquent payments at this time. But I have a bad, negative amortization mortgage. I now owe $350,000 but the value of my house has dropped to $330,000. Which is the best option for me, foreclosure or bankruptcy?

A.How about none of the above? There are other alternatives.

Start by having a professional look over your finances before resigning yourself to bankruptcy or foreclosure.

We suggest the National Foundation for Credit Counseling, the nation's biggest and oldest credit-counseling organization. Its 120 agencies abide by a set of professional and ethical standards that have served many individuals and families very well over the past 50 years.

Click here to find a member agency near you or call 1-800-388-2227.

The fees will be modest and their experienced credit counselors, who negotiate debt reduction and repayment plans every day, will figure out your options.

One possibility is asking your lender for a loan modification that would lower your monthly payments to something you could afford. There are lots of ways that can be done, such as turning your adjustable-rate mortgage into a more manageable fixed-rate loan.

If the lender refuses to modify you loan, you could seek its permission for a "short sale." This allows you to sell your house for less than you owe. You will be obligated to pay the lender whatever you sell the house for and the lender will forgive the difference. Our advice on how to avoid foreclosure will tell you more about negotiating with lenders.

You clearly understand the problem and by acting now, before you're months behind on your payments, you may be able to save your credit and your home. Please don't think bankruptcy or foreclosure is the only way out.