SOURCE: Total Debt Relief

November 17, 2009 14:33 ET

Bankruptcy vs Debt Consolidation vs Debt Settlement: Debt Relief Explained

With Recent Unemployment Figures Revealing a Staggering 10.2% U.S. Unemployment Rate, Explains Debt Relief Options for Consumers

CHICAGO, IL--(Marketwire - November 17, 2009) - Credit card debt continues to be an acute pain in the collective side of the U.S. today. The weak job market and the highest unemployment rate in 26 years both exacerbate the issue.

Credit Card Debt coupled with the fallout from the great recession has caused financial hardships for millions of consumers. These same consumers are seeking out and in need of answers and solutions to this credit card debt. breaks it down:

Debt Relief is the reduction and elimination of debt. It can be accomplished through various means and methods. These include but are not limited to the following programs:

Debt Consolidation is one of the most widely known of debt relief programs. It achieves debt relief through the combining of multiple existing monthly loan payments into a single monthly loan payment.

The key is that this new single monthly loan payment is smaller than the sum of previous multiple monthly loan payments. This is often achieved through the use of a home equity loan. But consumer beware: with choosing a home equity loan to pay off credit card debt, the consumer is actually exchanging unsecured debt for debt that is secured with the consumer's home.

Consumer Credit Counseling is a sort of kinder, gentler form of debt relief. This option is best suited for consumers who have relatively smaller amounts of debt and are not too far down the slippery slope of credit card debt. Credit counselors can examine a consumer's personal finances and expertly craft a household budget. This is extremely useful & beneficial.

Debt Settlement is the process whereby debt professionals negotiate on behalf of a consumer with the consumer's creditors in order to obtain a negotiated compromise settlement for a reduction in the total amount of debt that is owed. Debt settlement can typically achieve reductions in debt of 50%, with reductions in debt of 70%-75% increasingly common as well.

Bankruptcy is reserved for the most extreme cases of personal debt. It brings with it a host of harsh consequences so consumers should also explore Bankruptcy Alternatives. offers consumers a free debt analysis which they can take advantage of at the company's website as listed below.

Contact Information

  • Contact:
    John Chase