You are drowning in debt and you no longer know what to do to manage your growing debt. Circumstances in your life have put you in a situation where you have to make a decision about your finances. You have decided that credit counseling cannot help you and you are considering bankruptcy, but would like to check into debt settlement before you make your final decision.

A debt settlement company, sometimes referred to as debt negotiation company, offers a service that will reduce the total amounts owed on your debts. This type of debt relief is not a loan nor is it debt consolidation. It is a last resort before filing bankruptcy. You must understand that debt negotiation will be noted on your credit negatively, but anybody contemplating bankruptcy probably already has derogatory marks on their credit report. At this point, you should be looking for away out debt and then you can work on rebuilding your credit.

Here are some of the benefits of debt settlement:

*Your debt can be reduce by 30-50%

*No homeownership is required

*An alternative to bankruptcy

*Typically, you are out of debt in 3 years or less

*No credit check

*One convenient monthly payment

While debt settlement is probably your quickest option for getting out of debt, this debt relief option does have its drawbacks. Here are a few of the disadvantages of using a debt negotiation company:

*Can negatively impact your credit

*The IRS can consider the settled difference in the debt as income (this is not the norm)

*The lender has the right to collect on the remainder of the debt (this is not the norm)

As you can see, the benefits far outweigh the disadvantages. However, debt settlement is not for everybody. If you are still making your payments on time, but see yourself getting farther in debt, you may opt for a credit counseling program. This will help you get out of debt with out as much negativity to your credit report.

If you are have at least $10,000 in debt or you are more than 3 months behind on your payments, debt settlement is a good bankruptcy alternative for your financial situation. Getting out of debt is not easy, but it can be done. Many people have a hard time knowing where to begin, but debt settlement can give you a chance to be debt-free and enjoy a more stress free life. Get started today with a debt management plan.