What are your options?

Have Are you struggling with overwhelming debt, suffering from financial hardships and want to get out of debt? You have a few options:

1. Pay off all your debts in full, plus interest, plus fees, plus all other finance charges for the next 20, 30 or 40 years.

If you are struggling with debt, you are most likely barely able to make your minimum monthly payments. Even if you are able to make your monthly minimums, you may have trouble making your payments on time. After one late payment, the credit card companies increase your interest rate to as high as 39.99% and you begin to see your minimum payments increase (making it even more difficult to make your payments) and your debt balloon. You could end up paying three times what you borrowed! That's like paying back $30,000 for borrowing only $10,000!

2. Consolidate your debts using your home equity.

This option is often advertised as "pay off your credit card debts" but no debts are actually paid off. The credit card debt is only replaced by additional mortgage debt. Where your credit card debt typically has no collateral that a creditor can take for non-payment, consolidating your debt using home equity places your home as the collateral against your past credit card spending. If you find yourself unable to make the new payments, you could lose your home.

3. Enroll in credit counseling (debt management plan).

Government-approved, bank-supported consumer credit counseling agencies can help people who are able to make regular payments over five to seven years. Through agreements with credit card companies, the agency can usually secure a lower interest rate to help ease debt repayment. However, one missed payment could get you kicked out of the program and all the progress you made could be quickly negated. The strict repayment policy causes many consumers to drop out or be kicked out.

4. File for bankruptcy.

Thanks to the new bankruptcy law, filing for bankruptcy is more difficult and costly than before. About 30% of filers who would previously go through a Chapter 7 (liquidation and debt cancellation) are now forced into a Chapter 13 (five-year repayment plan). Basically, this is a court-supervised debt management plan and it has a high failure rate, just like credit counseling.

5. Negotiate debt-reduction settlements with your creditors.

A growing number of people who find themselves falling through the cracks of available debt relief options are turning to debt settlement (also known as debt negotiation). Many people seek out debt settlement companies to take care of setting aside money for paying settlements, negotiating settlements and handling creditor calls. However, everything a debt settlement company does, you can do yourself. So, why pay $1000s in service fees when you can do it yourself? All you need is the right information and guidance.

Don't put it off any longer! When you're drowning in debt, you can't afford to keep ignoring the problem. With credit card companies charging outrageously high interest rates and fees, each payment feels like you are taking two steps forward only to be knocked back one step. The longer you wait, the more money you throw down the drain. Click here to get started now. (We accept credit card and PayPal payments.)