The word ‘liability’ is strongly associated with the word ‘depression’. It draws off your energy and hopes and thus worsens your inner peace. The key to recovery is action. But it is twice hard to focus your attention towards one goal with your scattered mind. This leads you to follow another’s example in this field. For example- chances are that you choose Bankruptcy as your first solution which is not at all good! Do not do that!

These are certain available options for indebtedness:

1. Debt Consolidation – Which will make one debt by collecting all the unsecured debts. The advantage is that it will have a fixed lower interest rate and its convenience.
2. Debt Settlement – This is a settlement process designed for those who cannot pay their minimum monthly payments. As a relief to the consumer, the credit card companies cut off 40%- 60% of the original sum.
3. Bankruptcy – The worst status to be in. This process damages the credit ratings which will have its effects for another 10 years including your reputation loss.

According to the bankruptcy law, the consumer is advised to attempt the remedy mentioned in chapter 13 bankruptcy codes- a debt settlement program. The purpose is to recover at least one third of the original sum. Those who cannot settle their debts through a settlement program are only named as eligible to file a bankruptcy.

Though bankruptcy can stop every single action against you, the damage it causes to your financial states as well as to your public image is not healthy. The lenders will avoid you due to the stigma associated with your name.

If you find yourself on the verge of bankruptcy, it is wise for you to consult a debt reduction program which will negotiate with your credit card company and thus abolish nearly a 40%- 60% of your original debts including the interest. Before trusting the settlement company with your personal account related information make sure that the company is a ‘legitimate’ one as the success of the process solely depend on the company.