What are your debt relief choices when you find yourself in debt that you cannot handle? There are five of them, let’s take a look at each.Number one, you can tap the equity you have available in your home to pay off your credit cards. This way, proponents say, you can then write the payments you make towards your debt off of your income taxes. This is true, but usually what happens is that a person takes out a home equity loan, pays off their cards, then runs them right back up again. Now they have a home equity payment plus new debt. Default on the home equity loan, they could loose their home.

Ok, number two. A consumer credit counseling service (or cccs). These companies will negotiate with your creditors to remove late payments and interest. In return, you agree to pay off the total amount owed within a certain time frame. Trouble with this one is that many people find they cannot keep up with the steep new monthly payment, and end up dropping out.

Number 3. Debt settlement. With a debt settlement, you and your creditors come to an agreement where you will pay a certain percentage of your total debt. Usually this is done in one lump sum, or a few months’ payments. Your credit score will take a hit. If you can afford this type of debt relief, it may be the best one.

Number 4. Bankruptcy. Bankruptcy is simply a debtor telling their creditors that they cannot pay. The debtor may or may not be able to wipe their debt clean. A bankruptcy will stay with you for ten years, and make it very difficult to get a loan or other credit. Sometimes though, it is the only option.

Number 5, disconnect the phone, and stop answering the door. Do nothing, don’t pay. Good luck.

These are your debt relief choices. Which one you choose depends on your situation and comfort level.