Debt Settlement Debt Settlement is when we take your unsecured debt and significantly reduce your principle balance and give you One Low Interest Free monthly payment approximately 30% lower than your minimum payment with your creditors. This is ideal for someone who is in financial hardship and is late on their payments or about to go late on their payments. Debt Management Debt Management works with your creditors to lower your interest rates, so that more of your payments go toward your principle. Your payment is roughly the same as what you are already paying, however your term is reduced to approximately 36 - 60 months. This is ideal for someone who is current on their payments, but can only afford making the minimum payments. Home Equity/Debt Consolidation These loans may seem great for some home-owners with substantial equity intheir home and good credit, however, keep in mind that you are transferring unsecured debt into secured debt and now risking your home as collateral if you can't make your payments. Ignore (pay forever plan) - This is a creditors favorite: Making only the minimum payment on your cards, the problem is that it takes an average 6 years to pay off every $3000 in debt (click the link below to find out the true cost of making minimum payments) http://bankrate.com/brm/calc/ MinPayment.asp Bankruptcy Bankruptcy was designed to be a consumer's last resort and has a devastating negative effect on your credit that could last 7 to 10 years. Keep in mind that bankruptcy is the worst possible scenario for your credit and is also public information.