Addressing debt problems is possible now as there are many options available to take a perfect decision depending on your individual situation.
These choices help in resolving and settling debts to a lesser amount than you actually owe.
Generally, on experiencing severe financial setbacks you fail to pay bills and this result in accumulation of debts.
Debt consolidation loan is one of the best options for people having a good credit rating or at least an average rating.
Debt consolidation loan does not reduce your debts, but shifts it to another place and gives debt relief.
Consumer credit counseling is another option for people who are not in a position to make even minimum payments, and are facing extreme financial difficulties as well.
This program is a viable option for people who can afford monthly payments.
However, this is not very successful as it does not reduce your debts and takes longer time to complete.
People struggling to make monthly payments usually take longer time to clear their debts, and by that time their interest alone runs into thousands of dollars.
This implies that they may potentially pay three times more than the amount they now owe.
Hence, making monthly credit card payments is safe to remain out of debts and this helps in keeping the credit card rating positive.
Bankruptcy is an unpleasant experience, but is a quick fix option to financial problems.
However, in 2005, filing for bankruptcy process was made very difficult and is believed to take longer period than debt resolution programs.
So, it is best to consult a licensed attorney and proceed.
Federal grants are eventually the best to get relieved from debts.
This is the money that need not be refunded, but can be used to obtain debt relief.
However, you should find out more information from the government sites as grants are available in diverse forms.