Choosing the Best Form of Debt Relief

When it comes to dealing with debt, people have many choices, just as in other areas of life. Similarly, some of those options are much better than others. With that in mind, let’s take a look at some of the options to consider when choosing the best form of debt relief.

Option One – Ignore your debt.

Believe it or not, some people do choose this option. While it might seem tempting to go along with them, ignoring debt is the fastest way to destroy your credit. Plus, like so many other maladies, ignoring debt will not make it go away. This option is a terrible, awful, no good, extremely bad Idea.

That is unless you like the idea of having your credit rating destroyed, lawyers and collection agencies calling you, being unable to rent an apartment, buy a home, or a car — and in some cases find employment or get insurance.

These are the ramifications you accept when you decide to ignore a debt.

Option Two – Take Personal Control

When you take personal control over your debt and commit to getting out of it, you can actually do all the negotiating with credit card companies on your own. Keep in mind though, if you have extensive debt and decide to go this route, you could be signing up for a full-time job managing the negotiations.

Credit card companies have a vested interest inseeing to you paying your bills. They have no reason to listen to you, unless you have leverage like not paying your bills. Still though they can be open to reason, if you have the documentation to back up your claims and a workable plan to make them whole.

Other approaches falling under this heading include debt counseling, debt management and debt consolidation. Each of these holds significant potential for success, some of them can also preserve your credit score.

Option Three – Enroll in a Debt Settlement Program

Working with a debt settlement company can oftenget you farther along in this regard in less time than going about it on your own. When it comes to credit card debt relief, these companies’ methods have proven successful.

Yes, there will be fees to pay, but it might be less costly than spending so much of your time working toward this aim. These firms often have pre-existing relationships with the decision makers on the other side of the transactions, which can be a real benefit to you.

On the other hand though, settlement isn’t a guaranteed get out of debt free card. It’s important to go in with your eyes wide open.  You’ll find more information on this topic at

Option Four – Bankruptcy

One of the reasons the federal government did away with debtor’s prisons was the development of a credit system and a legal way to declare you can’t pay your bills. To this end, federal bankruptcy laws have been enacted and tweaked throughout the decades.

Because bankruptcy is a legal process, you receive a “went bankrupt” badge that some future creditors might frown upon. Nevertheless, if there is no other option, a Chapter 7 bankruptcy could represent a chance at starting over.


Of the four types of debt relief, not paying your debt is the absolute worst option. However, there exists a world of choices between that one and choosing the best form of debt relief for your circumstances. So take your time, weigh the pros and cons and make your decision accordingly.

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