One of the things people need to sit down and really explore when they start to consider credit card debt assistance is what would be the most sensible solution to the debt trouble? For many, this is a tough question to answer while the phone rings off the hook and credit collectors are making nasty threats about ruinning your credit.

In many cases, the debt trouble arises through mismanagement of credit card debt. If this is the leading contributor to debt trouble, then seeking credit card debt assistance can achieve the same as something way more serious, like Chapter 7 bankruptcy. Whereas credit card debt assistance will work on fixing the credit card problem, Chapter 7 bankrupty eliminates all credit problems... and then some. Thing of Chapter 7 as using an nuclear weapon to get ride of an ant problem.

Of course, credit card debt assistance does not take care of an ant problem. This types of credit problems are much more than a nagging nuissance for most, and as such people struggling with such problems will likely take a more serious approach as well. This is where self-negotiated debt settlement and professional debt settlement programs fit in nicely.

While debt settlement has the effect of cleaning up some credit debt problems by reducing the principal balance owing by up to 65%, the remaining balance will get written off. While this will haunt the borrower or credit seeker for years to come, the end-result is much kinder than Chapter 7 bankruptcy, which scars all credit for a duration of up to 10 years.

Ultimately, even though debt settlement as a credit card debt assistance solution will have an adverse impact on mid- to long-term borrowing requirements, it is much easier to explain a settlement situation than it is to explain the bankruptcy. In many cases if there has been sufficient time between the date of settlement and the time that credit is being applied for, the lender may simply ask for evidence that the applicant's portion of the debt was indeed repaid. This type of letter will come from the creditor who agreed to the settlement and is something that should be kept safe and in original format by the person who needed the credit card debt assistance in the first place.

As a debt management tactic, debt settlement is more than just credit card debt assistance. It provides the right amount of relief when it is need and it addresses the root of the problem (credit card debt) and not the general problem (credit as a whole). For many, it treats an isolated problem and while the after-effects might linger, these effects can be easily dealt with.

Have you heard those commercials on the radio or on television that promise that if you have debt trouble you can get out of debt quickly by calling their number? (You know the ones; the guy doing the voice over has a voice that could put an infant with the worst case of colic to sleep).

Here is the real deal on those commercials.

1. They target people with debt trouble. Why? Because people with debt trouble are desperate to get out of debt. They will call, they will ask what it is all about, and they will often be more than willing to sign up.

The conversation often goes something like this:

"Tell me, Mr. Smith, if I can get reduce your debt by sixty or sixty-five percent, would you be willing to sign up with our debt solution?"

Who wouldn't say, "Heck, yeah!"?

2. These people promise to help you get out of debt. They don't tell you that they are going to negotiate a debt settlement plan with your creditors and that the part they get reduced actually gets written off by the creditor. This results in a bad credit score that will haunt borrowers for some time to come.

3. While debt trouble is definitely something that almost everyone will experience in their lifetime in some shape or form, there are often other solutions aside from debt settlement. As such, people with debt trouble are strongly urged to investigate all options, not just those presented in radio and television commercials.

Ultimately, if you have debt trouble you should investigate ways to improve your finances, not a promised quick and easy solution. These solutions are like get rich quick schemes and are unsustainable over the long term. Sites like this as well as those of our partners can provide a wealth of information to debtors.

Remember, with the right medicine, just about any problem can be treated properly.

Debt Removal: $3,750 per hour... any takers?

You had better not be considering this offer!

With debt removal being such a hot topic these days, a lot of people seem to want to know what it is really all about. Some, burdened with enough debt trouble to shave years off of their lives, will spend a few bucks learning about it too... but where debt removal really gets people into trouble is when they spend thousands believing they hired someone to eliminate credit debt.

This is a classic case of "buyer beware." Debt removal does not exist. People who want to eliminate credit debt only have a few options available to them.

The truest for of debt removal is bankruptcy, more specifically Chapter 7 bankruptcy. As the ultimate debt removal technique, bankruptcy wipes all debt clear off the slate. This provides borrowers with the greatest level of debt freedom... but with all good things, there are harsh consequences to Chapter 7. Obviously, the borrower's credit score takes a dump. Credit becomes off limits and, at best, difficult, for a period up to 10 years.

Wow, that's a decade!

But credit is just the tip of the iceberg. And, honestly, it's the tip that you'll find above the waterline. The other consequences can be suffocating to say the least. These will include, but are not limited to:

• inability to get a new job. Just remember that you give potential employers the right to do a background check. This will inevitably include a credit check that shows a discharged bankruptcy. And if you had to choose between giving an offer letter to a bankrupt individual or one who exercises obsessive control over their credit, who would you pick?
• higher insurance rates. As noted above, maybe. (On a lighter note, with insurance rates so high, a debt removal process might be needed just to make your premium payments these days!)
• stress in personal relationships. Debt removal might seem like the answer when a nagging spouse or partner joins in with the creditors and won't leave you alone. But Chapter 7 bankruptcy actually adds a tremendous degree of stress to relationships (it's been studied and proven).

There we have come up with just three non-credit related effects of the ultimate debt removal program out there: Chapter 7 bankruptcy. And, realistically, there is no alternative. There is no other way you can eliminate credit debt without hijacking your creditors' mainframe and subsequently destroying the credit bureau's system as well!

Free Credit Debt Advice? Nothing's Free... Or Can It Be?

Pardon the cynicism, but it seems rather strange that people who need free credit debt help are rarely ever able to find that help... for free. If they had money to repay their debt, they wouldn't be looking for credit help. If they had money to hire someone to deal with their problems, they would not be looking for free credit debt help!

Understand that when it comes to getting help, there are two pieces of the credit debt help pie. One is advice, the other is negotiation.

Get The Credit Debt Advice You Need

Short of needing legal advice for a bankruptcy filing, you probably need some good credit counseling or budgeting advice to help remedy the problems you have encountered. Most times, credit debt advice is free.

Banks and other credit lenders have been getting more involved in this arena and offer plenty of great advice at no cost. Government and Community agencies will also offer free advice. The nice part is that this third-party advice can truly help with the aspect of your finances that is causing the most grief, and even if you could afford to pay for that advice from a single source, it is always wise to seek more than one opinion and to obtain the advice from a third-party

Negotiating Does Not Cost A Cent!

The part that a lot of organizations that offer credit help will charge for is the negotiations with unsecured creditors. These negotiations are typically for the purpose of reducing the amount of debt to be repaid. In some cases, debt balances can be reduced by as much as 65% of their original balance.

Keep in mind that the credit companies will deal directly with you. You do not need to pay a third-party for this service. The reason creditors will negotiate is that the unsecured creditors know they have no recourse with your debt. If you stop paying, they have no asset to recover and liquidate. As such, they understand that it is in their best interest to agree to a reduced repayment amount and write-off the difference because if you happen to speak with a bankruptcy trustee, they will get none of it back anyway.

With this in mind, and armed with a proper budget that you worked through with your credit counselor, you can negotiate intelligently with your unsecured creditors. Understand that they will want to get the most from you and you will want to repay the least. They will not want you to file for Chapter 7 or Chapter 13 bankruptcy because they will see none of their debt amount repaid if you take this route.

Do The Work, Don't Pay The Price

This is how free credit debt help exists. You have to put in some labor (negotiating, which anyone can do) but the part that requires extensive knowledge (the advice) is usually free anyway. If you are unhappy with the advice you receive, seek a second opinion.