For those contemplating declaring bankruptcy, debt settlement would be a good debt reduction strategy as this would involve obviating the need to take the drastic step of declaring bankruptcy. You will have to pay income taxes on the amount saved, though this amount would be less than the interest you would have had paid. You should evaluate this option and feel comfortable with it and also be sure to shop around for the best deal.

The final debt reduction strategy open to you is of course to declare bankruptcy for which you would need to take the advice of a bankruptcy attorney since this is quite a difficult process that requires legal help.

Though no single one of these debt reduction strategies may be ideal, the best thing you can do is to be very careful about which option you do decide on, and remember to ask a lot of questions learn the workings of each process, and also check with the Better Business Bureau regarding unresolved complaints.