Debt can be a terrifying thing to have hanging over your head, especially when you have problems repaying it. There is nothing worse than having to choose between paying your bills or feeding your family. Don't be overwhelmed. You have options available to become debt free. We will discuss these various debt management options shortly. First you need to understand the different types of debt. There are two forms of debt - secured debt and unsecured debt.

Secured debt exists when a creditor maintains a security interest in an item or personal property such as a house or an automobile. If you fall behind on payments on this debt and the lender is unsuccessful in debt recovery, it can repossess the property that secured the debt. You may remain liable for any deficiency balance owing on the debt after your property has been repossessed and sold. The laws regarding home mortgages vary by state so a lender's debt recovery rights depend on the terms of the mortgage and whether any other lenders have an interest in the property.

Unsecured debt arises when you borrow from a creditor to obtain goods or services on credit in exchange for your promise to repay the debt. This debt is not collateralized by property and commonly includes credit card debt, medical debt, commercial debt, and personal loans. If you fall behind on unsecured debt payments, lenders may take legal action but more commonly will try to work out an amicable debt settlement.

A secured debt can become an unsecured debt when the property securing the loan has already been repossessed and sold by the creditor. If the sale of the property still does not cover the contractual obligation or debt, a "deficiency balance" is now owed by the consumer. This deficiency balance becomes an unsecured debt. Often, this balance can be negotiated through a debt settlement.

If you are like most people in debt, you have been searching for a debt solution. There are hundreds of debt-counseling companies springing up. Of course, as in any other industry, there are both reputable and dishonest debt management companies. Some debt-counseling companies make false promises and are out to make a quick buckat your expense. Other debt-counseling or debt management companies are funded by your creditors. These companies may not offer you a debt solution that is in your best interest. Unfortunately the debt management industry is not closely regulated and is filled with 'salesmen', as opposed to professionals. In general, debt management falls into two categories: debt-counseling and debt settlement.

Each of these very different debt solution can help you become debt free. You may want to look into debt management with either a debt-counseling company or a debt settlement company. While either option can be a viable debt solution, debt-counseling may take longer. These debt management options are very different and the results may vary depending on your situation and your goals. The first thing you want to do is speak with a debt management agency (debt-counseling or debt settlement) about your specific situation.

Debt-counseling companies are generally funded by your creditors and will help you consolidate your debt into one monthly payment while hopefully lowering your interest rates. Debt-counseling can also be just another form of debt recovery for the creditors. This debt solution will often take 5-6 years to pay down. With this type of debt solution you will repay your full balance plus interest. Contrast this with the other main type of debt management, debt settlement (also known as debt negotiation).

The debt settlement method is rapidly being recognized as the best way to become debt free quickly while avoiding bankruptcy. As in debt-counseling, debt settlement enables you to make one monthly payment that you control. However, debt settlement will typically reduce your entire debt load by 40-60%. We do not work for credit card companies like debt-counseling programs and will help you become debt free in three years or less. Debt settlement companies charge a fee to get started but do offer financing options. To receive your free debt settlement consultation please click here or call us toll free at 888-443-3328 and inquire about our debt solution. Become debt free today!