If you have a lot of credit card debt, it can feel like you may never get out from under it. The debt continues to stack while you try to pay off your cards. How can you lessen your obligation to credit card companies?

According to the FTC, you can put debt behind you without spending all of your money.

Negotiating debt

To settle your debt, you may consider a debt settlement company. The settlement company negotiates with the creditors to pay a lump sum less than the total balance. One issue with debt settlement occurs if the creditor does not agree to settle. Sometimes debt settlement keeps interest fees which can increase your debt again later.

In many cases, you have to deposit money into a special savings account. Before you choose a debt settlement company, check the local consumer protection agency to avoid any scams that may cost you more money in the long run. Debt settlement companies may not help you with lawsuits made by creditors.

Considering bankruptcy

If you cannot settle your debt, you may consider bankruptcy instead. While bankruptcy will lower your credit score, you can lower your debt with it. To rebuild your credit may only take a few years. If you use Chapter 13 bankruptcy, you establish a payment plan to rid yourself of debt in three to five years. In Chapter 7 bankruptcy, you eliminate your credit card debt.

When it comes to settling debt, there are a variety of options for debtors to choose from. While required with bankruptcy, credit counseling can help you understand debt relief.