We all know that hard times are here as are the problems associated with revolving credit debt in the U.S. and the world. There is a big, big problem with almost a trillion dollars in debt, but there are companies that offer consumers a chance to considerably reduce or even eliminate debt through Debt Management Plans.

One thing is that you have to absolutely research before entering into a debt elimination program. First, study how to stop debt collections and learn what the law allows in the way of consumer protection; then go forward toward settling your debts.

Debt Consolidators will claim that you can wiggle out of debt or use loop holes in the credit card provisions that will allow you to walk away without paying a dime, which is a sales gimmick. The advantage is that they will negotiate your debt with credit card companies.  Remember that credit card debt is not illegal, and you absolutely cannot pay a Consolidator to erase debt.

There are Debt Consolidators who have ethics and will be truthful and explain your options with a plan designed for your particular problem to pay your debts. A plan has several strategies for a client, such as a lump-sum payoff offer to the creditor, paying over time with the interest - eliminate or stop interest at the agreement date to eliminate the credit card debt you owe. The payment period is usually five years maximum or pertaining to higher sums owed.

If considering a Debt Management Plan, realize that debt settlement is not for everyone and is not the only option. The Debt Management Plan is also known as Chapter 13 bankruptcy. It requires you to pay part or all of your debt within a time frame of five years. It’s an extremely controlled structure of repayment.

However, if you owe in excess of twelve thousand dollars, you may be qualified to use Chapter 7 bankruptcy, because under new rules for Chapter 7, it eliminates all your debt. There are certain provisions such as reaffirming certain debt, reaffirming real property such as the home you live in or automobile for commuting to your work and a cash provision under the bankruptcy law.

How to settle debt is only a learning process and the debt experience an expensive lesson in learning not to live above your means. The task is worth the work ahead and the payoff is a great relief.

In monetary reward, it will allow a better credit record, to pay less points on a home loan, lower interest rates on consumer items financed and the extra money left over for your future.