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Debt Reduction Company
Debt Reduction is another way to get out from under debt. With this option debtors make arrangements with a debt reduction or debt management company who acts as a middleman between you and your creditors.
These debt reduction companies often negotiate with your creditors in order to lower your interest rates and reduce monthly payments. They then combine these lowered monthly payments into one lump sum thus making it easier to pay off your debt without ruining your credit.
The other method of bankruptcy will ruin your credit for certain and will last for 7 years. Using debt reduction methods such as these, you can keep some of your credit and begin rebuilding immediately after your debt is repaid.
Generally speaking it is up to the individual whether they choose this method over bankruptcy. In all fairness you have to ask whether the credit is worth saving at this point. If you see light at the end of the tunnel then this method of debt reduction is usually the best bet. On the other hand if you owe so much money you don't ever see it being paid off then choose plan B.