With excessive credit comes excessive debt. The most efficient way to manage that debt would be something called a Debt Settlement. These have been around for years, thousands of years to be exact. It’s been only a decade or two since they’ve become popular in the United States. Debt Settlements were established as a means to satisfy two parties: creditors and borrowers. Borrowers benefit from debt settlements by getting anywhere from 25-65% of their total amount owed removed and thus keeping them from having to claim bankruptcy. Creditors on the other hand, gain from this because it will save them a lot of money that they would’ve otherwise lost had their clients filed for bankruptcy. So it’s really a win/win situation.

Debt consolidation is as easy as 1,2,3. When going to talk with a creditor to consolidate your debt, follow these simple steps and you can quickly start to work yourself out of consumer debt.

· Check the company for a policy or guarantee that will either: protect you from having to pay a fee if a settlement isn’t negotiated, or produce a refund if a settlement cannot be negotiated. Note: It might be a good idea to look and see if the company offers some sort of bankruptcy assistance if a debt settlement can’t be reached.

· Shop around. There is more than one debt settlement company out there. Some companies report to the major credit agencies. Not all of them do, but if you end up with one that does, it will lower your credit score at first, but after steady payments are made, it will begin to boost your credit score to an even higher number than it was before you made the settlement.

· Make sure you can make these payments. Unpaid debts WILL lead to a lawsuit.

Trade Associations have also been established in order to keep consumers safe from bad business practices and to also stop state from creating laws that are unfair to consumers. The two biggest trade associations are the United States Organization for Bankruptcy Alternatives and The Association of Settlement Companies. If you have any questions about these associations, please visit and .

There is another type of settlement called a credit card debt settlement that only focuses on credit cards. In order to receive this type of settlement, you have to go through a credit card settlement agency. Just like with a regular debt settlement, a credit settlement agency will go over your finances and try to negotiate something between the consumer and the creditor. As long as there is a good reason why you can’t pay off your credit, or if they feel like you really are trying to get the debt paid off, they will do their best to make sure you get a settlement. To be quite honest, credit card companies don’t like to sue their clients any more than any other company. It’s a hassle that they would like to avoid if possible. So in most instances, they will usually lower your monthly payments, and if that still doesn’t work, you can just make adjusted monthly payments, though you won’t be able to use that particular credit card until it is completely paid off.

Paying off you debt is a tough thing to do, but if you use these tools effectively, there is no reason why you can’t at least eliminate some of your debt. When seeking debt help, always look into more than one company and seek a second opinion if you’re ever in doubt. Secure your financial future today!