If you're in way over your head financially, and you're struggling just to get by each month, there's a good chance that you've taken a long and serious look at your options to become debt-free. You've probably read more than you care to know about consumer credit counseling, bankruptcy, debt consolidation and debt settlement, but your diligence in finding a solution to your financial predicament has led you to believe that debt settlement may be a viable option.

There are a few considerations, however, that need to be factored into your final decision regarding debt settlement, and probably the most critical of these is the availability of sufficient funds to follow through with the agreed-upon settlements with your creditors. You see, if it's simply not realistic that you'll be able to fund the negotiated settlements with your creditors, your choice has already been made for you, and debt settlement is not the solution for you.

When negotiations have been ongoing and a mutually agreeable settlement has finally been reached, you're expected to release funds to the creditor with whom you reached an agreement. Some creditors will accept the settlement amount over several months, while others will insist on one lump sum payment. Either way, if you default on the negotiated settlement agreement with your creditor, the settlement becomes null and void, and you're expected to pay the entire debt in full.

If you believe funding will not be an obstacle, then debt settlement can be an excellent solution to your financial crisis. While your credit score may be reduced for a short period of time (if it's not already), it will improve a great deal once your accounts are updated to reflect a zero balance. Also, many people have concerns regarding the possibility of a tax liability as a result of debt settlement. To get a clearer picture regarding debt settlement and taxes, visit http://donaldsonwilliams.com/Debt_Settlement_And_Income_Taxes.html

Finally, let's take a look at your final decision because reaching that decision is simply not that easy. As a matter of fact, it's downright frightening, and something most people are hesitant to think about. No matter what choice you make regarding the best resolution for putting your financial problems behind you, it's new territory, and the thought of losing your credit privileges, whether through bankruptcy, debt settlement or consumer credit counseling, is not something any of us really want to face. I can say with a great deal of confidence, however, that once you've decided which option is best for you, you'll finally feel a sense of relief. I would encourage you to not procrastinate; procrastination simply leads to several more months of struggling to pay your bills. Think long-term and you'll realize that in a few short years (very possibly months), you'll be debt-free, your credit score will be restored and you can hold your head high knowing that you faced an extremely difficult situation and made it through just fine – and very likely accumulated a great deal of knowledge in the process.