When seeking a solution to debt relief, you have many different options. Consumer Credit Counseling Services, debt consolidation loans, bankruptcy, and debt settlement are the most common. Of course each one has its own unique pros and cons, and each one will benefit some individuals more than others; there is no single debt solution.

Some of the disadvantages of debt settlement are:

• Unlike in declaring Bankruptcy, you have to legal protection, meaning you can be sued by a creditor for failing to make payments. If this happens while you are in a debt settlement program and you do not have enough funds in your trust account to immediately settle the debt, you may have to file for bankruptcy.

• Also, debt settlement has an unavoidable negative impact on your credit score. This is due to the fact that while in a debt settlement program, you stop paying your creditors.

Some of the advantages of debt settlement:

• Unlike in Consumer Credit Counseling or a debt consolidation loan, both of which require you to pay back your debts in full, including interest, in a debt settlement, you only pay a percentage, usually around 50% to 70% of your debt, including fees.

• Debt settlement, while negatively affecting your credit during the process, leaves no permanent scar on your credit history like filing for bankruptcy does.

• Also unlike in bankruptcy, in which your credit history is paraded about in a courtroom, debt settlement is private.

• Finally, debt settlement is a more rapid way to achieve debt relief than your other options. It can take as few as 4 months, but definitely less than 2 years. Credit counseling, and bankruptcy take 3-5 years on average to get you out of debt.

Not everyone will benefit from or even qualify for a debt settlement program, but checking with a debt settlement firm is the first step to finding answers.

Debt Settlement Debt Reduction Eliminate Debt

Debt Solutions.  Credit Card Debt Solutions.  These are broad terms. What is the optimal debt solution? The reality is that there is no optimal debt solution that fits everyone. The key to finding your optimal solution, is to consider all of your options. What you do not want to do is to go to one type of firm (e.g. credit counseling, debt settlement, bankruptcy, etc.) and only hear about that option. Most of the companies that deal with debt, sell one option (and yes, they are selling a service). Here are some of the relevant questions:

1) Debt Solutions question #1: What type of debt you have. Is it a solution to credit card debt you are looking for? Tax debt? General unsecured debt like medical bills and signature loans? Mortgage debt? A debt settlement company generally handles only credit card debt and other unsecured bank debt (like a signature loan or unsecured line of credit). Most consumer credit counseling companies also handle only credit card debt. If the debt you were considering settling is medical debt, tax debt or mortgage debt I would advise you to consult a bankruptcy attorney.

2) Debt Solutions Question #2: What resources do you have to pay the debt? What is your income level? Is it high or low or somewhere in between? Do you have a lump sum of money available to pay off some of your debt now? If your income is low and you have no assets to offer for settlement, Chapter 7 bankruptcy would be worth considering. If you are a higher income client, you may not qualify for chapter 7 bankruptcy. In that case, your options are to file a chapter 13 bankruptcy or to settle your debt.

These are the 2 basic “filter” questions to get you pointing toward your optimal debt solution. Then, there are other thing to consider, like length of time until you are debt free, how various courses of action affect your credit rating, potential tax ramifications of each course of action.

Most of the companies you will find on the internet are not actually debt solution companies at all. They are marketing companies that sell your lead to another company. Most of the people that you will talk to you are required to only have a high school education. Most of them took a 2 week training course.

But your debt situation is a very serious matter to you and it deserves to be treated with some real thought. At Trident Debt Solutions, we go over all of the options available to you and we discuss the pros and cons of each option. We are a small firm, and you will speak directly with me, Steve Craig, attorney. We are debt management consultants who leave you with a customized game plan to get you out of debt quickly. When you call, I will consult with you and after getting a thorough understanding of your situation, I will tell you what your Optimal Debt Solution is. If we take you as a client, we will see your case through until you are debt free!

Steve Craig is an attorney practicing in Denver and Boulder, CO. He has been in the debt reduction and elimination business since 1994. He has helped more than 2500 clients get out of debt with no consumer complaints.