There are many things to consider when contemplating your debt situation. Please take time and review the five debt relief alternatives listed below, as well as the comparison charts, as these will help you determine which option best suits your needs.

Option 1: Making Minimum Monthly Payments

Continuing to make minimum monthly payments will take many years to payback and will cost you thousands of dollars in interest. Click here to calculate the true cost of paying the minimum!

Option 2: Credit Counseling

Also known as Debt Management Programs (DMPs) or Debt Consolidation Programs. These programs typically take about 5-7 years to complete. Credit counseling companies TRY to get creditors to lower their interest rates by sending proposals requesting a lower APR. You will still be responsible for your debt total, an interest rate and a monthly fee from your Credit Counseling Company. You are required to send your monthly payments to the credit counseling company, NOT directly to your own creditors. You also chance having a higher payment than you did before you sought help because of the way this type of program is designed. If you are looking to reduce your payments this is probably not your best option. Credit Counseling Companies have control of your money in order to pay your creditors. This can act as a negative on your credit report. When a company disburses your money for you they are considered a third party and are required to add a Third {arty Arbitrator mark to your credit report. Different lenders view this mark equivalent to a Chapter 13 Bankruptcy. Other possible pitfalls include late or missed payments by the company you have hired and many creditors have strict policies regarding such issues and can drop you from their program if such incidents occur.

Option 3: Bankruptcy

Bankruptcy is usually something many people would like to stay away from. Due to the changes in the bankruptcy laws, as of 2005 it has made it more difficult to eliminate your debt with a Chapter 7 Bankruptcy. Many people are being referred to a Chapter 13 bankruptcy which requires the filer to make a payment to the court for a time of 3-5 years. The payments can be high and can cause additional financial strain to the filer. A bankruptcy can stay on your credit report for 7-10 years (dependant on the type of bankruptcy and state obtained) and can make it difficult to obtain credit in the future. Almost every creditor, lender, and employer asks if you have ever filed bankruptcy and you are required to answer honestly. Due to the severity of this option it should always be considered as a last resort.

Option 4: Home Equity or Debt Consolidation Loan

This option may work if you have good credit and a large amount of equity in your home. However, please remember that by going this route you will convert your unsecured debt (credit cards, etc) into secured debt, which puts your home in jeopardy. If something was to happen and payments are missed or late, you could potentially loose your home. With the housing market in such distress and lenders getting tighter on their lending practices it could be a lot harder to pull the equity from your home. In addition, when establishing credit, more often than not, you will be advised by a financial advisor that applying for a home equity or debt consolidation loan should is not the way to remedy any negative financial situation.

Option 5: Debt Settlement

Also known as Debt Reduction, Debt Settlement is one of the quickest, most effective ways to eliminate your debt at a fraction of the cost. We can achieve your goal of eliminating your debt in the shortest time possible.

We will work for you to settle your debt for a much lower amount than is owed.

Our process includes looking over your budget and deciding on a payment that will work for you. Your new payment will be set aside in an account that you will control and will fund the settlements we negotiate on your behalf. Your accounts are settled one by one over the course of your Program (typically 36 months or less). Once the debt is settled, your creditors will send you a letter stating your debt obligation was fulfilled and will report a zero balance on your credit report within 30 days. Each account you enroll in our Program will be settled in the same manner and your will be debt free in a matter of months.

***Unlike credit counseling and bankruptcy, enrollment in our program will not show up on your credit report.

*PLEASE REVIEW THE CHARTS BELOW. THESE CHARTS WILL VISUALLY DEMONSTRATE WHAT OPTIONS ARE POSSIBLE.*

(These calculations are estimates only. Visit CNN Money online for more exact estimates at http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp)

IF YOU HAVE $20,000.00 IN DEBT:

	Minimum Payments	Credit Counseling	Southwest Debt Services
Payment	$500.00	$350.00	$306.00
Term	33.2 YEARS	7 YEARS	3 YEARS
Interest Rate	19%	12%	0%
Total Cost	$51,800.00	$29,363.00	$11,000.00

IF YOU HAVE $45,000.00 IN DEBT:

	Minimum Payments	Credit Counseling	Southwest Debt Services
Payment	$1,125.00	$787.00	$688.00
Term	33.2 YEARS	7 YEARS	3 YEARS
Interest Rate	19%	12%	0%
Total Cost	$116,550.00	$76,067.00	$24,750.00

IF YOU HAVE $60,000.00 IN DEBT:

	Minimum Payments	Credit Counseling	Southwest Debt Services
Payment	$1,500.00	$1,049.00	$917.00
Term	33.2 YEARS	7 YEARS	3 YEARS
Interest Rate	19%	12%	0%
Total Cost	$155,400.00	$88,089.00	$33,000.00