Credit Card Debt is affecting the lives of tens of thousands of U.S. consumers during this economic downturn. The country will pull out of this slump and rebound strongly as it always does. However, the strains of debt on those who are having a hard time making ends meet can weigh strong on the minds of many. Unfortunately, for many, getting rid of unsecured debt with as little personal financial damage as possible is the only way to survive these hard times.

How can this be done?

Today, many people need debt relief. The vast majority of debt can be eliminated in two ways. There are advantages and disadvantages to both and the one that is right for any individual will depend on their personal circumstances. The blame for these personal circumstances can be pointed in many directions. Many make the argument that the state of the economy in recession is to blame for the scenario. Credit card companies are frequently blamed for the historic rise in credit card debt today. And one could also make the argument that the consumers themselves need to shoulder much of if not most of the blame for credit card debt becoming the issue that it has. In any case, many are looking for solutions to the problem.

Two of the most widely used ways of unsecured debt settlement are available to consumers today. Bankruptcy is probably the most widely known debt relief program. Bankruptcy is heavily advertised when the economy is strong or weak, however, bankruptcy carries many serious side-effects and should only be considered as a last resort when dealing with credit card debt. A few of the consequences of filing bankruptcy are: the virtual destruction of one’s credit record, limited availability of personal credit for up to ten years, the inability to rent an apartment in one’s own name, being required to pay deposits for future home utilities such as gas, electricity, water, home phone, internet and cable TV, as well as the very real possibility of being passed over for a job, as more and more employers these days are conducting credit checks as part of their normal screening for new job hires.

A less intrusive form of debt relief is debt settlement. Debt settlement is considered a more effective form of debt relief. Under a debt settlement approach, the consumers credit debt balances are negotiated for reduction by a firm on behalf of the consumer. Debt settlement programs can reduce a consumers debt by 50% to 75% of the outstanding debt balance on unsecured accounts. Debt settlement is much easier on your credit ratings and does not carry the stigma or repercussions of bankruptcy. Of the two a negotiated debt settlement is the winner over bankruptcy almost every time.