by Kandice Day

Created on: June 26, 2009

It seems like everyone and their mom is in debt right now. Did you know that entire states can file for bankruptcy? I guess it makes sense when you stop to think about it, but how did they get to that place at all? Things seem to be upside down all over the place, and people are grappling with some tough financial decisions.

As of March 2009, U.S. consumer debt was at $950 billion. With the national unemployment rate at nearly 10 percent, consumers are finding it more difficult than ever to not only make their credit card payments, but decide whether to get out of debt alone or use a debt settlement program.

"As household wealth has declined in the downturn, more American families are facing financial distress due to high debt burdens. In 2007, before the recession began, 14.7 percent of U.S. families had debt exceeding 40 percent of their income." (Source: U.S. Congress' Joint Economic Committee)

The first step in the debt settlement process is the easiest, and yet most overlooked. You much simply understand and admit that you are in debt and that you need help. Most debt over $10,000 is extremely hard to negotiate on your own. Credit card companies, as you probably have figured out if you're dealing with debt settlement, are extremely fond of their money. They are less likely to negotiate with you than those commercials might have you believe.

It seems these days that the harder you try to settle your debt, the more they credit card companies just raise their fees and increase your interest rates. Then there are those unlucky few who have had to deal with card companies decreasing their spending limit while at the same time increasing their interest rates. If you are caught in this predicament, call a debt settlement program immediately because the longer you wait to deal with your debt the worse your credit score will become.

Debt settlement programs, however, probably already have established relationships with credit card companies. As with any business relationships, these things grow and are cultivated over time. Debt settlement companies are more likely to have certain contacts within the credit card companies with whom they can negotiate with. It's not like they just call up customer service and ask to negotiate your debt. They know exactly who to talk to. Every case it unique and will end in a unique settlement, however, each negotiation builds that business relationship.

Find a program that has been in business for some time and has a

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