For a consumer to find his way out of the muck and mire of amassing or overwhelming debt, it takes choosing the right credit solution. And that means defining goals along with taking a cold, hard look at the debt owed and the spending habits that resulted in them.

The majority of American consumers are facing more debt than they ever imagined that they would. The weakened economy along with previously cavalier spending habits originating in the 1980's and 1990's combined to create a situation which even economists did not foresee. While Wall Street and national banks received government bail out help, the average person has not. The result is a pile of bills, many of which are in arrears or even default. Seeking out credit solutions is something even the person who never considered they'd be in financial trouble are now doing. It is an intelligent and good course to take.

To cut through the television and other ads which make it all look easy, the consumer has to go through something of a quick learning curve. There are a number of credit solutions, and choosing the right one takes research. For some, debt consolidation will work, but it usually means obtaining a loan. In other words, the consumer is trading a number of unsecured debts for one debt that is secured. While this sounds reasonable and like a good plan, it means that a home or other property is put up for collateral. Should there be a default on that loan, then it can result in the seizure of property.

Debt management and debt settlement work differently. No loan is obtained. A consumer usually works through a debt relief company, who deals with creditors and negotiates new principle balances. The consumer is given a monthly amount that must be paid into an insured account, and from that the debt resolution company pays off the new balances. Credit ratings suffer for a short time with both of these methods, but the principles are paid off quickly enough - usually 12 to 36 months - that there is time to rebuild.

Of course, the worse case scenario debt solution is bankruptcy, and even that isn't as simple as it used to be. The laws are changing, and it isn't as easy to even declare anymore. Plus, it doesn't always wipe out unpaid debt, and there is a chance of loss of property. It's best to try to work through one of the other methods. Getting out of debt may be more painful than getting into it, but the sense of freedom and accomplishment is something to work toward.