When you have so much debt that you are not able to keep up with the minimum payments, your options are limited:

• Debt Management (or credit counseling) Program
• Debt Settlement Plan
• Bankruptcy

When is bankruptcy the best option?

Let me briefly explain how the first two options work:

DEBT MANAGEMENT PROGRAM

A Debt Management Program is a program designed for those who have substantial unsecured debt (mainly credit cards) and realize that even though they are making the required minimum payments, the balances are barely going down!

The average person will take 10-15 years (some experts estimate longer) to repay credit card debt.

And when and if it is repaid, the average consumer will end up paying back 3-4 times the original amount that they borrowed!

Think about that... If you have say, $20,000 of credit card debt and are just barely making the minimum payments, you could end up paying back $60,000 to $80,000!

In a Debt Management Program, you will have:

• One low monthly payment
• Reduced or sometimes even 0% interest rates!
• Waived late fees (usuallyl)
• Eliminated your debt in about 4-5 years, saving thousands of dollars in interest and fees!

What if you cannot afford the typical 2.5% payment required of a Debt Management Program?

If you cannot afford the payment of a Debt Management Program, then you should consider a DEBT SETTLEMENT PROGRAM.

In a Debt Settlement Program, you will have:

• One low monthly payment (determined by your financial situation)
• Debts negotiated at approximately 50% of the balance
• Eliminated your debt in just 3-5 years, depending on an individual's circumstances

What if you cannot afford the reduced monthly payment of a Debt Settlement Program?

If you cannot afford the payment required of a Debt Management Program or a Debt Settlement Program, bankruptcy may be your best option.

There are basically 3 areas to examine in order to deteremine if bankrutpcy is the best option:

• Financial
• Ethical
• Legal

By the time you are considering bankruptcy, you should have already explored a Debt Management Program and a Debt Settlement Program, and determined that you cannot afford either of the reduced monthly payments. You have explored the FINANCIAL aspect of determining when bankruptcy is the best option.

But what about the the ETHICAL aspect of bankruptcy?

In most cases, getting to the point of bankruptcy is not your fault.  Maybe you:

• Lost your job
• Lost a spouse or loved one
• Sufferred a major illness or injury
• Went through a terrible divorce
• Or, many other reason too numerous to list

The point is, most people do not get to the point of bankruptcy from just spending too much.

No matter how you look at it, bankruptcy is basically saying, "I cannot keep my promise to repay my debts." It an tremendously emotional decision, and one that can have lingering effects for years.

Before you seek a bankruptcy attorney's counsel, ask yourself if there is any way you can repay your debts WITHOUT going bankrupt?  Can you:

• Ask for help from friends or family
• Get a second job
• Make cost saving/budget cuts or even create a crisis budget
• Sell some of your "toys" (extra car, boat, RV...)

I am not an attorney, so I am not goint to give any legal advice. To explore the LEGAL aspects of filing bankruptcy and to see if you qualify for either Chapter 7 or Chapter 13 bankruptcy, you need to seek the help of a qualified bankruptcy attorney.

There are many factors to consider when determining if bankruptcy is the best option. We can help you make the best choice with a FREE no obligation consultation with one of our Debt Solutions Specialists.  Click on the link below or simply give us a call at 1-877-492-4109

According to a report issued by the United States Federal Reserve System, as of July 2012:

• Total US credit card debt was over $793 BILLION DOLLARS!
• The average credit card debt per household was $15,799.
• One out of 4 stated that their personal debt had increase by 26% in the last 12 months!
• 76% of college students have credit cards.

I read an article about Survival in the Outdoors recently.  Interestingly, many of the lessons on how to survive in an emergency can be applied to how to survive with too much debt.

Step One: Don't Panic!

Stop and take a deep breath! Do not panic.  Do not feel ashamned that you are lost or in this prdicament.  Some of the best outdoors people in the world have become lost or disoriented,  and have run around in circles!

Slow down, relax and take a good look at your situation. There is a way out of this!

The same thing applies with having too much debt.  When you finally realize that you are in real trouble with your debt, DON'T PANIC!  Take a deep breath and realize that you are not the only one!

There is a way out of this!

Step Two: Evaluate your Circumstances

When lost or in an emergency situation, the next thing you must do is take stock of your circumstances:

• Do you have water, shelter, food, fire?
• Does anyone know where you are?
• What supplies or tools do you have?

Once get a really good look at your situation, you can start to take steps to get out of it!

The same thing applies with having too much debt:

Complete a BUDGET OR FINANCIAL WORKSHEET.

This is the only way you can really know:

• How much debt you really have?
• What are the total of the minimum payments you have to make?
• How much are all of the other household bills?
• Is there any discretionary or money left over at the end of the month?

Step Three:  Make a Plan

In a survival situation, once you calm down and get a good idea of your circumstances, you can devise a plan.

Make a shelter.  You can survive without food for weeks if necessary and many days without water, but if you are caught in the cold and/or rain, you could die from hypothremia within a few hours!

In other words, you have to survive to survive!

The same holds true for getting out of debt. The most important thing you can do is to formulate a plan. Depending on your unique circumstances, you may need qualify for:

A DEBT MANANGEMENT PROGRAM

This program allows you to have:

• One monthly payment
• All of your creditors are being paid each month
• Late fees and interest are reduced or eliminated
• Creditors stop calling!

To see if you qualify, --> CLICK HERE <--

But if you don't qualify for the Debt Management Program, you may qualify for a:

DEBT SETTLEMENT PROGRAM

This program allows you to have:

• One monthly payment that will work with your budget
• Your debts will be negotiated and settled for much less than the balances
• Creditor calls can be stopped
• Once all of your debts are settled, your credit report will improve

Bankruptcy

If neither of these programs work for you, then you may qualify for BANKRUPTCY.  Bankrupcty is a scarry word, but many times, it is the best and only solution.

There are various types of bankruptcies and you should consult a bankruptcy specialist to learn more about your bankruptcy options.

The worst thing you can do in a survival situation is to do nothing! The same thing applies to surviving with too much debt.

We can help point you in the right direction.

For a FREE Consultation, click here.

DEBT MANAGEMENT vs. DEBT SETTLEMENT - What's the Difference?

It's important to know that one program does not solve all problems.

If you are making the minimum monthly credit card payments, Debt Management program may be right for you.

Debt Management (also known as Credit Counseling) allows you to consolidate all of your unsecured debt into one low monthly payment and offers the following benefits:

• Pay less. Creditors will offer a plan to repay your debt at a reduced interest rate and in some cases, a lower payment.  Also, most creditors will wave late and over the limit fees AND bring your accounts back to current without making up those missed payments. This alone could save you thousands over the life of the debt!
• Pay off your debt faster. If you continue to just make the minimum payments, it could take you 20-25 years to pay off that credit card! In a Debt Management Program, you should be able to pay off your debt in three to five years, saving you thousands of dollars!
• Reduce your stress. Calls from you creditors STOP and you will have an end in sight.
• One, easy payment each month. You will have one monthly payment so you don’t have to juggle payments.

But, if you cannot afford the payment required by a Debt Management Program, Debt Settlement may be the answer.

Debt Settlement is a program designed for people:

• Who are delinquent or are starting to become delinquent on their payments
• Some or all of their debts have gone into collections or are about to be turned over to a debt collector.
• DO NOT want to file for bankruptcy

In a Debt Settlement Program, most people:

• Have a substantial reduction in their monthly payment
• Save thousands of dollars in both principal and interest
• Are DEBT FREE in 36-48 months
• and, AVOID BANKRUPTCY

DEBT SETTLEMENT CAN HELP WITH THE FOLLOWING:

• Credit Cards
• Lines of Credit
• Medical Bills
• Unsecured Loans
• Collections
• Repossessions

If you would like to learn more or if you have questions about these two options, our Debt Solutions Specialists are here to help.  Please give us a call at 1-877-492-4109 or simply click on the link below for a FREE COMPARISON of both programs based on your total debt!