The Bankruptcy Reform Act of 2005 made it harder for individuals to file bankruptcy, which is always the last resort. Unfortunately, simultaneously consumers racked up so much debt that counseling companies - which are higher up on my list if you need help managing your debt - are sometimes unable to help. So if you fall into this camp, debt settlement may be something to consider.

Money 911: Your Most Pressing Money Questions Answered, Your Money Emergencies Solved (ed. Harper Collins, 2009) - ISBN: 9780061962097