In the earlier years people saw a great increase in the number of people going bankrupt.
This got the government and the economy all worked up.
This prompted the coming of new debt laws in year 2010 which were meant to decrease the number of bankruptcy filings.
A lot of legal rules and tactics were introduced to promote debt reduction options.
Debt settlement, debt consolidation, debt counseling all these methods are highly capable in solving your debt problems.
These are perfectly legal options and recommended by even the government agencies.
All these methods work on reducing your debt using one or the other way.
Debt settlement reduces the overall amount of your debt using a settlement deal between you and your creditors.
Debt consolidation helps in consolidating many existing debts into a single one.
This help you to reduce the rate of interest on the debt and hence affects the monthly installments.
Debt counseling helps you to make your decisions in a much more organized way.
There are many government agencies providing free debt counseling to discourage people from bankruptcy.
Credit counseling is also similar though it involves a third party negotiated deal between the creditors and the debtors.
All these methods make the path easier for you because you can escape paying back your debt by even up to half the amount.
Given that the credit card companies get no tax cuts now on no loan repayment, supports the debt settlement deals.
Such tactics do not leave as long an impact on you as long as bankruptcy does and you can soon live a debt free life again.
Moreover it further saves your finances because of its cost efficiency keeping in mind customers' financial condition.
l