Dear Sir Or Madam:
     I,unfortunately, just lost my job. I have been meaning to look
into this, but I have not had the time. My question is: What the heck
is the difference between debt settlement, debt negotiation, debt
consolidation, credit counseling, etc, etc? I am bombarded with phone
calls, junk mail, letters, etc! Based on my present situation, I
figure I should try to get rid of some of this debt. So I would like
to know which one is the best route to take? I have about
$8,000(mostly credit cards), no job at the moment, and want the one
that won't ruin my credit rating! Also, out of the best route, which
is the best company to go with? I look forward to hearing from you!
                                                         Sincerely, 
                                                           T. L.
P.S. Sorry about the payment amount, no job right now!

---

Clarification of Question by tonybony-ga on 18 Jul 2004 11:52 PDT

Here's that extra info:
    I am currently living in Alabama. 
    I am 31.
    I own an '82 Ford Bronco, few hundred in mutual funds.
    No ongoing commitments? Girlfriend?
    I am an aircraft technician(airframe and powerplant mechanic).
    Pretty good, it requires going out of state, traveling,
contracting, possibly going direct, but that would require moving (not
possible w/o $).

Hi, Tony

One thing that is for sure is that Credit Card debt is VERY expensive.
It's not just the interest but also the penalty charges.

Your immediate requirements are (a) to try to keep everyone happy and
(b) to generate some income.

If you can provide some more details, the better advice you will obtain.

Where do you live?

How old are you?

Have you got any assets (e.g. house, car)?

Have you got any ongoing commitments?

What do you do?

What are the prospects for getting a job?

It's not the end of the world but it does need working on FAST!

Good luck!

Bryan

I agree with probono: More info will help. My friend tried some of the
resources you mentioned in the late 90's then filled bankruptcy 4
years ago. The rules are a bit different in each state and there have
been some recent changes. For about 3 years they sent small amounts to
each creditor. Some were nasty and lowered the credit limit so they
could charge them both late fees and over the limit fees, beside
thinly veiled threats of legal actions. Some of them offered deals,
such as recinding the late charges and over the limit charges, if they
paid them a few hundred dollars. Of the few they tried more than half
reniged on their share of the agreemaent.
If free bankruptcy counseling is available go for it, as some property
such as boats, timeshares, vacation homes and your 2nd and third
family car will be seized by the bankruptcy court to partially pay
your debts. If you sell or give these items away less than 24 months
before your first bankruptcy court hearing, you may be charged with
fraud. That's how it was in Florida in 1999. In Florida they were
quite lax on the $1000 personal belongings, because the court did not
want to try to sell year old DVD players, used clothing, tickets for
upcoming football games and such like. The counseling also included
some info on alternatives to bankruptcy.   Neil

Tony at your age and with your skills, you are going to be OK.

However, I am a Brit and so I will leave it to one of my American
cousins to outline the best way forward.

Keep smiling!

Bryan