Financial struggles are common in this day of worldwide economic downfall.
With unemployment rates skyrocketing and available job wages falling below the standard cost of living rising debt is a struggle for families.
How to get yourself out of this debt can be confusing to say the least.
Before you consider bankruptcy there is an alternative which is debt settlement negotiation.
Your first step will be to gather your last years' worth of financial records from paystubs to each individual credit card statement, bank statement, mortgage or rent payment, medical bills, utility payments and any other loans or payments that you make each month.
Knowing how much income you have verses the debts you have will give you a clear picture of your finances.
What you see may not look very pretty but its a start to realizing your true financial outlook.
It will also give you a realistic outlook on what you can afford to pay each month and what you may need to give up to survive financial setbacks.
At this point you may consider handling the negotiations on your own or if the task seems too daunting you may choose to use a debt settlement negotiation company.
Before choosing a company to handle this task for you be sure to do a little background checking on them.
Check your local phone book for a credit counseling center that will help you at no charge.
Beware of the ads on television and on the internet for debt consolidation for many of them charge a hefty fee upfront to handle the paperwork.
This is money that could be used in paying your bills.
Sitting down with the financial counselor will require at least an hour or two.
Be prepared to explain your true financial picture, why you are falling behind on your bills and how much you can afford to pay off each creditor during debt settlement negotiations.
These are all things they will use to negotiate with your creditors.
It will typically take a week or two for all of your creditors to be contacted and negotiations to take place.
Remember that creditors would rather have a portion of the debt paid all at once than nothing at all.
Credit card companies may take as low as pennies on the dollar, while other larger debts may simply choose to accept a percentage of the total due.
Secured debtors will typically reduce the amount of past-due fees and late charges.