A few years ago, I found myself struggling under a mountain of credit card debt. I could barely make my payments, my credit card companies were raising my interest rates left and right, and I had no idea what to do. I had about $26,000 in high interest credit card debt and was only making about $34,000 per year at the time! I was incredibly stressed out and thought I would never get out of debt and my credit would be ruined.

I consider myself a pretty smart person, so like many people, I turned to the internet and began researching my options. Normally, I am pretty good at finding answers and solutions, but searching for credit card debt relief information I was completely overwhelmed.

Every other site I visited seemd to provide conflicting information or promises that seemed too good to be true. Everything was incredibly confusing, and I had no clue what my real options were. And now, I was very concerned that I would fall victim to some scam and be left further in debt.

Through much research, and through the help of a very good and trustworthy friend of mine who worked for a few years as a non profit credit counselor, I finally began to understand what my options were and what the advantages and disadvantages of each debt relief method were.

Fast forward about 4 and half years to today, and I am officially out of credit card debt! And I also feel that, after helping several friends find solutions to their debt problems, I am somewhat of a resource on finding the right way out of debt. So here is my opportunity to share that information and hopefully help some of you out.

When dealing with credit card debt, there are a handful of potential solutions available. However, examining your circumstances will generally eliminate most of these options and leave you with one or two options that will actually give you the help you need. The key is to determine what those one or two best options are for you.

Your basic potential credit card debt relief options are:

1. Strategizing and paying debt off on your own.
2. Getting a loan or line of credit to consolidate and pay off your credit cards.
3. Getting help from a credit counselor who can enroll you in a debt management plan, helping to lower your interest and pay off your debt much faster.
4. Using a debt settlement company, who will attempt to reduce your debt by negotiating with your creditors.
5. Filing for bankruptcy, which could involve either wiping out your debts or, in the case of chapter 13 bankruptcy, creating a repayment plan.

Let's take a look at each option, as well as the pros and cons of each. Options 3 through 5 are often referred to as "debt relief," but any of the 5 options could be best for you depending on your situation.

If you can comfortably pay all of your bills and expenses every month without using credit cards, tapping into savings, or borrowing any money, then you may be best off paying your debt off on your own. However, you need to have a plan and strategy to make sure you are getting out of debt and not just treading water.

The first thing you will need to do is take a look at your interest rates. Credit card interest rates are generally high, but some people have higher rates than others. If your are interest rates are in the teens or over 20 percent, then a large portion of your payment is going to finance charges every month while very little is going to principal.

If you have high interest rates, you need to get them lowered. If your credit is very good, you may be able to call your creditor and ask for a lower rate. You could also look into transferring balances and getting a lower rate, or getting a lower rate loan to consolidate. If you are unable to reduce your interest on your own, you should consider option 3 and speak to a credit counselor.

If you already have reasonable rates or were able to obtain them, then you are all set to pay off your debt on your own. Follow one of these two strategies for paying debt off on your own.

Why should you pay off your debt on your own when you could get help from debt relief companies? Because you don't need their help and you are better off paying it on your own when you can do so effectively and efficiently.

This method is the best for your credit rating, you won't have to pay fees for debt relief, and you won't have to worry about sorting through the tons of shady debt relief companies to find a reputable one. Plus, if your interest rates are reasonable and you have the means to do it, this method has the least disadvantages of any other option.

If you have the discipline to stop using your credit cards and stick to your payment and strategy, you can be out of debt in 5 years or less.

This method is basically paying it off on your own, but with the added step of getting a loan or line of credit, or transferring your balances and consolidating them on a lower interest credit line. You will want to take careful note of the terms of any loan or balance transfer you take. Make sure you consider any transaction or origination fees, and make sure that the interest rate or APR you are receiving will not expire after a short period of time.

This method can help you pay off your on your own by lowering your interest rates.

If you need a little help paying off your debt but can't quite do it on your own, your FIRST step should be speaking to a non profit, accredited credit counselor. The counselor should first of all look at your income, expenses, and debt. If the counselor seems to pushy or eager to enroll you in a plan or service, you should consider finding a counselor who is more helpful to you and will help you understand your options.

If you do need help, the counselor can enroll you in a debt management plan, which could help you get lower interest rates and a lower monthly payment. You will usually have your cards paid off in 3 to 5 years.

What disadvantages are there? The main drawback is that you have to close your credit cards and will not be able to use them. If you have really good credit and your interest rates are already low, you may not see much benefit. However, if you need help and need lower rates, this could be the best option for you.

Debt settlement companies promise to reduce what you owe by 40, 50, or even 60 percent!  Sounds great, right? It also sounds too good to be true, and it is.

Unless you are way behind on your credit card bills and they are all in collections, you should stay far, far away form settlement companies.  

The main drawbacks?  Large fees, you will get harassed by your creditors, your credit could be ruined, and you are likely to end up in even MORE debt.  You could even get sued and have judgements placed against you.

You can read more about the pros and cons of debt settlement here. 

The exception is when your debts have all been charged off or sold to collection agencies.  In this case, you MIGHT benefit from settlement.  Even then, you may be better of settling the debt on your own.

Bankruptcy is the end of the line, the last option and the last resort.  Many people rush into filing too quickly and regret it later, while others should probably file but refuse to.

If you are out of options, cannot pay on your own, cannot afford to pay even with the help of a debt management plan, and cannot make changes to your budget or sell any assets to make a payment of some kind work, then you should look into filing for bankruptcy.

I would strongly suggest speaking to a credit counselor first and discussing all your options, but a reputable counselor will help you explore possible solutions and then let you know if you should look into filing.

The drawbacks of bankruptcy include a huge black mark on your credit, which could last for up to ten years.  This will make borrowing and getting credit either impossible or extremely expensive for you.  It could also have other consequences, such as higher insurance rates and even cause you to not be hired for some jobs.

However, bankruptcy is designed to give you a fresh start and wipe the slate clean.  When you are out of other options and cannot find any other relief from your credit card debt, this may be exactly what you need.