Surely you looked for ways to clear your debt.
It comes at no surprise that more people turned to loans when the economic crisis took a turn for the worse.
But with low income and high expenses it was just a matter of time until these loans turned to huge debt.
Most consumers were forced to fill for bankruptcy, thus leaving the economy in a worse state that before.
Now it seems that things are getting better, and that the government is trying to make things the way they used to be.
In order to fix a declining economy, the first thing needed is to clear all the debt that it caused.
Each year billions of dollars are set aside in funds exactly for this purpose.
The creditors have to receive at least a part of what they lose debt settlement so that they can continue to give loans to people in need.
Stimulus money, as it is called, is used to pay the creditors if they accept negotiations and reduce the consumer's debt.
Depending on the amount of debt you have, there are several debt relief options available for you.
For small debt, for debt in which the real problem is the sum accumulated by interest and penalties, the best option would be debt consolidation.
You can pay off your creditors by taking another loan; this loan has lower interest rates and not so many penalties, this come in handy if you want to clear your debt faster.
For deeper unsecured debt, the best option is debt settlement.
This makes financial sense only if you have debt of over ten thousand dollars and if you are willing to pay half of it back.
You also have to withstand the annoying phone calls from collection agencies.
There are cases in which even bankruptcy makes financial senses, but this is quite rare and it is best to keep it as a last resort because it is a long and expensive process.
There are numerous debt relief tactics available and it is up to you to see if debt settlement makes financial sense for your situation.