If you are struggling with that four letter word DEBT, don't. To do nothing will cost you a lot of Money and Headaches.

The problem with debt is you have to pay it back, it can be both mentally and financially paralyzing when you can't. If you are considering Debt Relief or Debt Settlement take into account the following:

1. Amount owed.

2. Income (future earnings)

3. Your age

4. Your current credit rating

The older you are, the less time you have, if your deep in debt you may consider the "get out of jail free" card the law provides, Bankruptcy.

You don't need to spend the years you have left worrying about money. I'm not saying this is you first choice, but it may make more sense than getting more gray hairs than you will get naturally.

Younger folks need to weigh this more carefully, your purchasing years are ahead of you, FICO scores are important, Debt settlement should be looked at carefully. debt relief or debt settlement will affect your credit score but not as bad as bankruptcy.

As this economy declines, money gets tighter, it's hard to know which way lenders will go in the future. They swung real loose the last 5 years, now they swing real tight for the moment. See lenders have to lend, if they require high scores and this economic problem causes scores to lower, what will they do? They will lower there requirements or they can't lend.

This is just my opinion, if you can settle debt, sleep good, handle the repayment time-frame, go for it, but if your health is in danger dump it, go chapter 7 or 13. Your health is worth more than than the debt you owe. It sounds like a irresponsible statement, but when your health is at stake, well you know my answer.

There is no set answer to debt settlement, the combination of elements is different for each case.

Doing nothing will make it worse. When you face debt solutions will emerge, use this time to gain knowledge about the debt system. What you might imagine could be quite different from reality. Save yourself the headaches, get the facts.

This is a country of risk takers, our forefathers knew this and build provisions in the laws so people could start over, it comes with risk. No one is proud to say they failed or filled bankruptcy, but through out time many people have.

Look on the Internet for famous people who went bankrupt, you'll be surprised.

Don't panic, talk to people, get knowledge, make a decision. Don't let debt destroy the healthy life you deserve.Visit the Debt Hub for more information from the articles and ads.

There is a element of Debt less talked about that effects you, your family, job and happiness, it's Debt Stress.

If your in a position where debt is consuming your life, it's probably wearing on your health too. Easier said than done, the longer you don't take action the worse it gets. You may wait for a miracle to occur and maybe you'll get one, but if not the people you owe will start calling.

Call them first, they are use to people ruining from them, they react differently if you call them. You might be surprised most are very nice and know what the economic climate is.

If Debt Stress is ruining your health, stop and think about it, with out your health who cares about debt.

Your biggest enemy during these times is YOU, The outside world is rather tame. To them it's a product of business and economic times, to you it is devastating. Try and take it easy on yourself.

So, don't be to hard on YOU.

When you look back in a few years from now it will be just another bump in the road and in good health you will solve the debt problems you have.

Another option to Bankruptcy or Debt Relief is a rollover. Meaning you turn short term Debt into long term Debt.

If you have any equity left in your house these days that would be the most common source of rollover.

The two key dangers in handling debt this way are:

1. Not locking in Rates and Terms.

2. Reverting back to old habits. (running up credit cards after being paid off)

We have a good example of this in our own backyard. A state has short term debt, then sells a 20 years bond, turning a short term debt into a long one.

The problem we see now is they accumulated more short term debt. This is not what we want to do in our situations.

Shifting debt from one place to another is a option, the key is discipline, don't repeat the debt habits that got you there in the first place.

You could also consider cash from insurance policies, 401k loans, down sizing living space. We need to think outside the box of tradition sometimes.

Whatever you decide debt relief, consolidation of debt or bankruptcy make sure you don't repeat the same mistakes again, debt can be friend or foe.