We are drowning in debt and I am scared.

You have basically two options besides bankruptcy.
Option # 1 = credit counseling
Credit Counseling is great if you are not overextended and simply need to high interest rates lowered and have one payment. On average the APRs will be lowered somewhere around 6-8 %.If you can afford the payment for a dmp with a Credit Counseling Company you should.However if that payment is too much then you should consider a debt settlement program.
Option # 2 = debt Settlement
Debt settlement is an aggressive program and best for consumers that don't qualify for debt management, can't continue paying minimum payments, can't borrow to pay off debts and don't want to file bankruptcy. With Debt Settlement you will pay back is typically between 40% and 50%.

Be Sure when choosing either a Settlement company or Credit Counseling company you look them up on the BBB.

When I worked with a credit counseling service they not only reduced my rate but they also reduced my overall payment for a term of, I want to say, 36 months for total repayment. There are several out there to work with and I would look in to the United Way for one they would suggest. Some say that credit counseling is worse than filing for bankruptcy as far as your credit goes. You may want to get a consultation with a bankruptcy attorney. They will usually consult for free.

That is not true. credit counseling is a million times better than doing bankruptcy. That reason people say that is because it shows that you are in a counseling program so that you can`t apply for more credit while in the program. Its to protect the consumer from themselves. Once you complete the program it comes off your report as if you were never in a program. Anything is better than bankruptcy , even settlement. If you can`t afford a credit counseling program or settlement then and only then should you consider bankruptcy.

No one has mentioned debt consolidation as opposed to settlement. If you sign up for the site there is free professional consultation for you. The professionals are all rated also under the ratings chart above by state. Like Mobile says, bankruptcy is not a good choice except in extreme situations. Consolidation is better than settlement as it does not damage your credit in the long run as csettlement can. Please take advantage of the free consultation we offer!

Another good thing to do is to start by paying off the smaller debts first. Then use the money you were paying toward the next smallest until it is gone and so on. This will get you out faster then paying them all the minimum. Living frugal is good. I could write a book on it I have done it for so long.

credit counseling and debt settlement are both good options depending on YOUR situation. I actually like both programs. If you can afford "debt consolidation" which is also know as Credit Counseling or a dmp aka.. debt management Plan you should do it first. IF and only If you can`t afford a DMP or credit counseling than you should consider Debt Settlement. Yes it does hurt your payment history portion on your credit but if you are a good candidate for settlement than your bills are most likely going to be late anyways or already are so that shouldn't be a huge concern. Debt Settlement is NOT designed to improve your credit. IT IS DESIGNED TO YOU OUT OF DEBT FAST SO THAT YOU ARE IN A PRIME POSITION TO REESTABLISH YOUR CREDIT AND PREVENT YOU FROM DOING A BANKRUPTCY. I am not endorsing either programs ,again I like both programs. Its just that it is a pet peeve of mine when I here people say one is better than the other. It just depends that that persons situation.

Sorry Mobile however all I stated was that some people do say that it is worse and they do. I was not implying anything false nor was I endorsing any particular route to take. The point is to offer suggestions that offer options which is what I was doing.

Frogpatch, you mentioned, debt consolidation as opposed to settlement. Is debt consolidation different from a dmp?

angell , I did't insinuate that you did. Its just that since you did bring up that topic I just wanted to explain the truth, thats all.

Again.. my post was also "the truth".

We all agree that everyone's financial situation is different and what may work for some may not work for others which is why it is important to offer options so that others have the ability to look at the pro's and con's of each option.

This isn't the place, obviously, to banter back and forth over something as no one gets help in the end. And after this post I won't comment further however if you examine your earlier reply to my post as well as this last one you will see where your insinuation is in fact that I was less than truthful. Read my post again as well... I had nothing negative to say about a debt counseling service.

The truth in this case muct be subjective.

Well there you have it. Angell and I have different opinions. I guess we can agree to disagree. I would suggest you absorb the info given and decide what option is best for you. I am a financial adviser however I would suggest you speak with one in your area so they can look at your situations more in depth and see what they would suggest.

Go for debt consolidation...it will solve all your problems