Getting out of debt

You have no doubt heard the expression, cash is king. That expression is more prevalent now than ever before. Those that have cash are able to take advantage of the many bargain deals that are available. The problem is that most people don't have much cash to spend these days, but the debt is still piling up. While the banks got billions of relief from Uncle Sam, they haven't provided any relief in the accumulated debt caused by their high interest rates, junk fees and the way they calculate interest.

Oh, but there is a way to get relief from debt and its easier than you think. Aside from bankruptcy, there are really two types of debt relief. Debt consolidation and debt settlement. You're probably most familiar with debt consolidation. They're usually administered by a non-profit organization like Consumer Credit Counseling Service. With debt consolidation you agree to pay back your debt based on your monthly income. The banks prefer this option because they will usually get most of what you owe them. Another option that is gaining popularity is called debt settlement. Debt settlement companies charge you a fee and in return negotiate down your debt anywhere from 35%-65% of what you owe. The banks prefer that you use a consumer credit counseling service because they will net more money, but they are negotiating with debt settlement companies because they know something is always better than nothing.

You need to be very careful when choosing either a debt settlement company or debt consolidation. Make sure they have relationships with your creditors and check out their track record. When you finally get out of debt, stick to debit cards. They work as good as credit cards without the ability to accumulate debt.