With both debt default and an increase in illegal collection tactics on the rise, consumers appear jumpy for a quick get-out-of-debt solution. Banks, collection and credit repair agencies and even the court system know this and remain one step ahead of your motives.

Here are our top four worst ways to deal with impending debt that will surely leave more than one mark on your credit report:

Stop paying your bills. Maybe it was easy to ditch that music club, but the same cannot be said about student loans, credit cards or car loans. Depending on how much you owe, you (and even your family members) are looking at being hounded for years by numerous third-party collectors. Your wages could be garnished (law favors payments to be automatically taken out of your paycheck) and your car taken. And every detail remains on your credit report for years to come.

Claim bankruptcy. Going to court in hopes of wiping your financial slate is harder than ever due to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Millions are being re-evaluated from a Chapter 7 into a Chapter 13 bankruptcy which includes a repayment plan. This and the additional legal fees along with the length the mark stays on your report has just about every financial advisor recommending doing whatever you can to avoid bankruptcy.

Enter credit counseling. Hundreds of businesses exist offering consumers in friendly tones how they can best reduce your debt to one monthly and manageable payment. When you hire a credit counseling agency, you are basically hiring a new lender that tries to talks down the debt with your current creditors and then pays it off. You become in hock with this new, friendly bank, which comes with fees, is reported on your credit history, and is not looked upon with favorable lending eyes.

Hire a debt negotiator. The main difference between hiring a debt negotiator and a credit counseling service is that you’re keeping your various accounts open and asking for just negotiation – not pay off – assistance with your creditors (For a further definition between debt settlement and credit counseling, go to this LoveToKnow link here). Many negotiators claim the ability to knock your debt down pay half. You’d have just as much luck if you called the accounts yourself, one debt solution strategy we do recommend.