LOS ANGELES, CA--(Marketwire - July 24, 2010) -  It's hard not to notice all the advertisements and promotions for debt relief. Whether it is on TV, radio, newspaper, or the internet, there's some company promising freedom from credit card debt and other various unsecured debts. The problem is none of these ads inform consumers how the program works.

The main forms of debt relief available and how they work:

Bankruptcy -- Most consumers have an idea of how bankruptcy works, but tend to have some common misconceptions. Bankruptcy is a last resort program that can stop creditors from further collections. Bankruptcy filings have been on the rise in the past few years due to the economic crisis. In order to declare bankruptcy a consumer must be insolvent, meaning they are unable to make payments when they are due.

Debt Consolidation -- This program requires consumers to take out a loan which will pay off all their various debts. Consumers will then only have to pay off one big loan as opposed to many various debts. The goal of this program is to make payments schedules easier and reduce overall interest rates. By having a lower interest rate on the loan a consumer winds up having to less than if they were to continue making payments to their original individual debts.

Debt Settlement -- Perhaps the newest form of debt relief and gaining popularity. The unique program actually eliminates debt amounts sometimes by as much as 50%. The program centers around a negotiation process between the settlement company and the creditors. Debt settlement companies negotiate unsecured debts on behalf of the consumer in order to reduce debts to as low as possible. When successful, consumers can be debt free in 24 to 36 months while only paying up to half of the debts owed.

Everyone has a unique situation and not all of these programs are for everyone. It is recommended consumers struggling with debt seek out advice from professionals before making a decision.

Total Debt Relief offers consumers a free debt consultation with a debt relief professional at their company website:

www.totaldebtrelief.net/

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