More than a million Americans filed for bankruptcy protection in 2008, marking a significant jump over figures from 2007.

According to the American Bankruptcy Institute, the number of cases in federal courts in the last fiscal year reached 1,042, 993, a thirty percent jump over the 801,269 filings recorded in fiscal year 2007. In the fourth quarter of 2008, bankruptcies were up 34 percent from the same time period in 2007.

Much of the increase has been fueled by the falling housing market and a jump in foreclosures as well as consumer credit defaults, including for auto loans and credit cards. The rising unemployment rate has also forced many consumers into foreclosure and bankruptcy proceedings.

Those who do emerge from bankruptcy can expect to see their credit scores significantly lowered by the decision for up to ten years.

With that in mind, it's more important than ever to pay down debts, seek out lower-interest credit cards, and stay on top of your credit scores. In some cases, pay day loans can also be part of a successful personal financial strategy.

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