If your debt has become unmanageable you realistically only have 5 or 6 options:

  • Ignore and Avoid
  • Bankruptcy
  • Debt Consolidation
  • Debt Settlement
  • Debt Invalidation
  • Debt Assumption
Ignoring your debt does not help, it  just makes things worse

Ignore and Avoid

Pros – Doesn’t cost a dime (at least for now)

Cons – The negatives to consider:

  • No relief from anxiety or harassment
  • Fees and interest keep accruing
  • Collection calls and threats intensify
  • Risk of lawsuit increases daily including the possibility of
    • Wage Garnishment
    • Bank Accounts Levied
    • Liens on Property


  • Follows you 7-10 years
  • Can keep you from obtaining a new mortgage for atleast 2 years
  • Destroys your credit
  • Can cause banks to not give you a checking or savings account
  • Chapter 7 allows you to get rid of everything, if you even qualify
  • Chapter 13 allows the court to take your funds and dispurse it to your creditors – for as long as it takes!
Debt Settlement takes all the pennies you save

Debt Consolidation

  • May lower your monthly payments
  • May reduce interest rates or waive late fees
  • Eliminates collection calls
  • Your debt is rolled into your home mortgage and costs you more over time
  • Most companies destroy your credit in the process and don’t offer to help fix it afterwards.

Debt Settlement

  • Pay an upfront fee of 15-25%
  • Start a savings plan and put as much into the account held by the debt settlement company
  • When enough is saved, they use the money to negotiate a lesser payoff
  • May stop collection calls
  • Does not protect against lawsuits
  • Forgiven debt = taxable income
  • Process takes 12-36 months or longer
  • Won’t help your credit. They put a note on your credit report saying paid less than full balance and keep any collection or late payments that were already there. Showing future lenders you should not be trusted
Debt consolidation rolls over to your mortgage. Costing you more in the long run.
Debt Invalidation wastes money

Debt Invalidation

  • You enroll your unsecured debt accounts
  • Nothing happens until your creditor sells your debt
  • 3rd Party Collectors now begin collection practices
  • Invalidation begins sendng legal letters to prove debt
  • Forgiven debt carries tax burden as ordinary income
  • Invalidation does not handle original creditors
  • In case of lawsuit, some provide attorneys to settle and you pay about 50% of the debt
  • Does not help remove marks from your credit report
  • Your cost is 35% of the debt

Debt Relief

  • You enroll your unsecured debt accounts
  • Doesn’t matter how long you’ve been delinquent, they take closed accounts and 3rd party collections. 
  • Enroll up to $500,000 in total unsecured debt 
  • Dismissed debt has NO tax burden
  • You may one monthly payment on all the accounts accepting into the program
  • Process take 3-36 months 
  • Your cost is 45% of the debt, plus $250 application fee and $100 enrollment charge for each account enrolled