"Debt is like any other trap, easy enough to get into, but hard enough to get out of." -Henry Wheeler Shaw

Sometimes good people land in bad financial situations due to poor financial habits, or circumstances such as job loss, divorce, illness, death in the family, and so forth. They find themselves with seemingly unmanageable debt, sometimes accumulated over years, at other times, practically overnight, the result of a personal crisis or business loss.

Debt has become an American epidemic. As of May 2011, US consumer debt totaled a whopping $2.43 trillion, according to creditcards.com. Over 70% of the population - 177 million card credit card holders - report an average household credit card debt (per household with credit card debt) or $15,799. Bankruptcy filings are up a whopping 250% in the four short years from 2006 to 2010, with personal bankruptcies alone totaling over 1.5 million.

But what's the solution?The most common ways people try to get out of debt are:

• Chapter 7 or 13 Bankruptcy
• Credit Counseling
• Consolidation loans
• Debt Settlement
• Or simply keep making minimum payments, if you can, and hope that things get better.

Let's take a look at some of the pros and cons:

Bankruptcy legally reduces or even erases debt, and it stops creditor harassment the best of any method. However, it will also severely affect your credit rating for many years to come. A bankruptcy can stay on your credit for 10 years, affecting your ability to buy a home, rent an apartment, purchase insurance, cars, or cell phones without high rates and fees, and - in some cases - even get a job.

Those with higher incomes (or homes in foreclosure they wish to keep) will be forced to file a chapter 13 bankruptcy, which takes 3-5 years, requires partial or full payment of debts, and forces the borrower to live on a strict bankruptcy-court-determined budget. Only about 35% of debtors complete their chapter 13 bankruptcies. The remainder default, and stand to lose homes and other assets to creditors.

I recommend you consult a recommended bankruptcy lawyer, but also, explore the downsides so you don't become one of the many who regretted their decision.

Credit counseling programs offer some consumer education, but also negatively affect credit ratings (similar to a chapter 13 bankruptcy), but typically without the benefit of lowering balances. Interest rates and payments may only decline slightly, if at all, and most clients do not complete their programs. The fact that the agencies are generally paid by the creditors creates a conflict of interest when it comes time to negotiate for the borrower, plus, what seem like "small monthly payments" add up to thousands over time.

Because of the minimal benefit and how much it can impact your credit, you might consider negotiating with your creditors yourself if you only need "a little help" on your debt. Many creditors offer better deals to consumers than a credit counselor can negotiate, though you typically must be behind on your payments to be offered reductions in rate or payments.

You can find reputable credit counseling agencies at this government website.

Debt consolidation may lower interest rates or payments when a borrower consolidates (or pays off) several smaller debts with one large loan. However, it does nothing to lower the balances owed. (Actually, they will owe more because hefty loan fees are usually added.)

And qualifying for a debt consolidation loan can be tricky - if the consumer's credit is not excellent, they will likely only qualify for very high rates and/or a secured loan - "secured" by equity in a home, car, etc. This is risky business: if the borrower uses their home as collateral, they now risk foreclosure should they fall behind on payments.

Loans from family members may be an option, but again, you must weigh the "what if" factor should you find yourself unable to make payments. Many a relationship has been lost over money... is it worth the risk?

Be sure you read all the fine print about any consolidation loans, and understand the fees. And if you are borrowing from a friend or family member, make sure to spell out the expectations, deadlines and interest rate in writing.

Debt settlement is a way of negotiating your debts, especially, your balances so that debts can be settled for less than the original amount owed.

Some debt settlement companies have earned a bad name for taking borrowers' cash, whether or not they could help them. Others have acted fraudulently, collecting money then disappearing. And at times, borrowers were inappropriate candidates for the program and did not have sufficient income for paying off negotiated debts, so they paid the debt settlement company, but could not pay their debts. (As in a chapter 13 bankruptcy, the debtor must have income over and above their basic necessities with which they can settle their debts).

However, the best debt settlement companies have approached an 80% success rate, with borrowers paying significantly less and getting out of debt faster than other methods. Credit ratings do suffer in the short term, but recover much faster than with bankruptcies.

A new, improved version of debt settlement is the Fiscal Fitness™ program, which also combines some of the benefits of other methods. While it is not for everyone, Fiscal Fitness™ can help clients:

• Get out of debt faster by reducing what they owe on consumer debt and even past-due utilities.
• Find workable solutions with their creditors.
• Get training and support to follow a budget and pay off debts.
• Establish healthy financial habits to create lasting wealth.
• Get quality one-on-one advice from a financial professional.
• Protect their income and assets with appropriate insurance.
• And, most importantly, get a fresh financial start... without a bankruptcy.

The Fiscal Fitness™ program may not be for you, unless you

• have $10,000 or more in unsecured debt (it won't help with student loans, car loans, mortgages, or tax liens),
• cannot make reasonable progress on the debt as it now stands,
• are willing to compromise their credit history in the short term to become debt-free,
• want to improve their financial habits,
• have some income (above the bare necessities) to put towards debt, even if they are behind and cannot make minimum payments,
• and are motivated to avoid bankruptcy.

You can find out more about Fiscal Fitness™ at FiscalFitnessJourney.com. The company that offers the program is Partners 4 Fiscal Fitness, a subsidiary of Partners for Prosperity, Inc.

Are you or someone you know fighting a losing battle with debt? Do your research and consider which option works best for you. Some people want to eliminate as much debt as quickly as possible, others feel better only if they have paid back every penny.

But too often, people become trapped and cannot pay down their debts at all. They are trapped in revolving debt, borrowing each month as much as they pay off. If you are in that situation, make a decision to make a change and escape the debt trap!