Debt settlement can slash the amount of unsecured debt you owe – not just your interest rate as is the case with debt consolidation, where you would take out a single lower interest loan equal to your original balance.

While the law affords consumers certain protections against unfair debt collection practices, under certain circumstances, lenders can still take legal action against you if you fail to pay your debts.

Debt collectors have been known to take advantage of vulnerable consumers by bullying them into paying their debts. Even certain law offices have been shown to function as law suit mills, where lawyers sign thousands of wrongful claims per week that are given barely a minute’s attention.

You could save $3,000 or more every year just by cutting your spending in a single category: your food budget. According to the most recent Bureau of Labor Statistics Consumer Expenditures report, individuals spend on average $7,196 on food each year: $4,101 on groceries for meals prepared at home and $3,095 on food from restaurants and fast food joints (including tips).