Since the start of the financial crisis over three years ago, Americans have been working hard to get out of debt. America's financial mentality has shifted from how can I have fun with my money to how can I save for a rainy day. Last month credit card debt was reduced 8 percent on average in America. It was also the first month since April 2011 that the average credit score in America went up.

Although credit card debt decreased last month, debt continues to be a major hurdle for many people across the country. People face debt for various reasons, sometimes for reasons that are completely unavoidable such as an emergency hospital stay, emergency trip to visit a sick relative, or an unexpected car repair.

These unavoidable situations sadly sometimes result in unmanageable debt. Although new reports indicate people are reducing their credit card debt, many still owe on their cards and have many other forms of debt that are spiraling out of control.

Many experts are warning about increasing student loan debt coupled with a high unemployment. Since student loans almost never can be forgiven in bankruptcy court, and graduates are sometimes living off of credit cards, likely will face the need for credit card debt reduction plans later in life.

It's important for Americans, especially those with student loans to understand the different types of debt and what could potentially be forgiven in bankruptcy. If debt get's too out of hand for someone to make their minimum payments each month, it might be wise for them to consult with a bankruptcy attorney.

Source: Business Insider, "The Average Consumer's Credit Score Improved For The First Time In Nearly A Year," Mandi Woodruff, Feb. 16, 2012