If you are a consumer who is facing financial hardship and you want to begin to devise a plan to get out of debt, you may be interested in learning more about the different options available to you. While bankruptcy should be regarded as an option of last resort, alternatives such as debt settlement or debt consolidation may offer a solution to your financial problems. Debt settlement is a process by which you or a third-party company acting on your behalf contacts your creditors to negotiate a settlement, in which a smaller, immediate lump-sum payment is offered in lieu of continuing monthly payments. Debt consolidation usually involves seeking a loan that can be used to pay off smaller accounts with higher interest rates, such as credit cards and other unsecured debt. While the alternative that you choose should depend on your unique circumstances and financial means, be sure to carefully consider your options before committing to a course of action.