Looking back a few years, filing for bankruptcy was considered to be the only option to get out of massive debts. The current economic recession in US made many citizens file for bankruptcy. Bankruptcy is not considered well for the economy because it hinders the smooth flow of money as the lenders don't get their money back. With so many people filing for bankruptcy, the economy started facing major set backs. The government, as a result, came out with a stimulus package through which debt relief alternatives were introduced. These relief options benefit both the consumer and the creditor and do not have any adverse effect on the economy.
When you fill for bankruptcy your credit rating is so much damaged that it is impossible to get any loan in future. You can lose your valuable assets; also, you have to face a lot of insult in the society. Debt relief alternatives allow you to overcome your debts respectfully no matter how big they are. Most importantly your creditor rating is not damaged much. The most popular of relief programs are debt settlement and debt consolidations. Debt settlement is the right choice if your unsecured debts are massive. In debt settlement you can overcome your debt by acquiring debt reduction. Negotiations are made with the creditors to convince them for the reduction in debt. Usually you can have your debt reduced to 50 or 60% of the total outstanding balance. The remaining debt becomes bearable for you. You can pay the remaining loan in easily manageable monthly installments in a separate settlement account. The debt settlement experts can help you in this regard. The point is that it enables you to get rid of the loan without any burden on your finance.
Don't have massive debts; you can go for a cheap consolidation loan. This helps you get rid of the debt instantly. The consolidation loan can then be paid back on a very low interest rate in a much longer time period. Bankruptcy should be kept as your last debt relief option, as there are better alternatives which should be considered first.