Debt settlement is one of the best known bankruptcy alternatives available to the consumers in the present days.
Before commencing discussion on what consumers are saying about alternatives to bankruptcy, it is necessary to know why bankruptcy enters the picture in the first place.
Some of the conditions under which people think about choosing bankruptcy are:-

• When the amount of unsecured due is phenomenally high (greater than $10000).
  
• There is no source of income, savings or borrowing options to pay off these dues.
  
• When harassment and irrational behavior from lenders to repay the dues become unbearable.
  

These conditions have escalated ever since the economic recession has hit the country a couple of years ago.
Under such circumstances, the option of settlement and negotiation has proved to be the most sensible relief solution.
In theory, this method involves negotiating with the lenders to reduce the total outstanding amount.
This process works best when handled by professional settlement services.
The advantages of debt settlement and bankruptcy alternative can be discussed as follows:-

• Outstanding amount reduces to a considerable extent providing immediate relief to the consumer.
  
• Harassment from lenders in the form of phone calls or any other means of communication stops immediately.
  
• Elimination of interest rates, late fees and penalties on the dues is also possible through negotiation, which brings down the total payable amount to a considerable extent.
  
• The terms and conditions of repayment are negotiated in a way that is suitable to both the borrowers and the lenders.
  
• The repayment plans are so designed that it helps the consumer to not only get over the due, but also helps him to build up his financial stability.
  
• Unlike bankruptcy, debt settlement programs do not generally appear on the credit report.
  
• Repairing of the credit score happens more quickly through this process.
  This is impossible in case of bankruptcy.
  
• Once the repayment is over, the consumer becomes eligible to get a new credit card or, loans for various purposes.
  This cannot happen in case bankruptcy is declared because it shatters the credit report and the negative marking stays for more than seven years.
  
• Chapter 7 of bankruptcy leads to the assets of the consumer to be sold in order to repay the dues.
  He can lose his house in the process.
  Settlement through negotiation does away with this risk.
  

The above mentioned reasons make debt settlement better than other bankruptcy alternatives available to the consumers.
There are a few points that a consumer should keep in mind before selecting this option.
The authenticity of the company providing this service should be verified.
A consumer must evaluate his financial conditions and see if he qualifies the conditions for settlement as all kinds of outstanding dues are not eligible for this method.