Student loan debt surpassed credit card debt years ago.  Unlike credit card debt, student loan debt cannot be shed in a bankruptcy proceedings.  It stays with you.  2011 is the first year that student loan debt taken on is at $100 Billion dollars and outstanding debt exceeds $1 trillion.  Since the situation isn’t getting any better–the amount of loans being taken on, as well as the amount of loans outstanding will not return reasonable levels anytime soon–as a culture, we’re going to have to learn how to cope.  This article discusses a number of coping mechanisms to help you take care of your debt. 

For many of us who get into debt, our anxieties revolve around and around in our minds leading us in circles.  It’s time to get out of the toxic cycle and try to think clearly.   Some of the major anxieties that confront us  are among the most common and straightforward: How will I be able to make my regular monthly payments?  How long will it take for me to become debt free?  What will the total cost of my debt be and what impact will my debt have on my credit score. To help you address these issues, there are many debt resolution options available. You can go for credit counseling, debt consolidation, debt settlement or bankruptcy to deal with your debt problems depending upon how bad your debt situation is. It is important that you pick the right solution for yourself to be effectively debt free.

1. Credit counseling – Usually this option is applicable for those who have incurred debt but not an overwhelming amount of it. It is best to end a problem as soon as it starts and the moment you realize that you are facing debt problems you should go for credit counseling. Credit counseling is offered by many professional credit counseling agencies. When you enroll in such a program you are offered advice on how you can save more money by lowering your expenditures and the process to go about it.

2. Debt consolidation – This method is apt for you if you have multiple credit card debts. The problem with such credit card debts is that keeping track of the billing cycle and making monthly payments on your various credit card bills. With the help of debt consolidation you can merge your multiple debts into a single one so that your debt payback process becomes easier. Also the interest rate on your outstanding debt becomes lower which makes your monthly payment lesser. Thus you can save money on interest payment in the long run and get out of debt by making lower monthly payments.

3. Debt settlement – Debt settlement is quite an aggressive way to get out of debt. This method is applicable if you have missed multiple payments and defaulted in your loan. It is not possible for you to pay back the whole of your debt in such a situation. The process of debt settlement will help you to lower the amount of your outstanding debt by 40% to 60% depending upon the skills of the negotiator who is negotiating with your creditors on your behalf. This negotiator is provided by a debt settlement company when you approach them for debt help.

The last option for you is bankruptcy if you have a huge amount of outstanding debt and nothing else can be done. It involves drawing up a repayment plan for you by liquidating your assets under the supervision of bankruptcy court. Usually it is advisable not to go for bankruptcy as it can hamper your credit score to a large extent.