As the Congress turns its attention to the US budget and the nation's fiscal situation, the debates over the debt ceiling that have been seething underneath the surface could boil in the near future. The US Treasury is of the opinion that the nation will reach its debt limit within April, 15, 2011 and the Administration officials are ringing the caution bells and warning the US debtors of the dire financial consequences if the $14.3 trillion debt ceiling is not raised. But the Republicans say that they won't commit themselves to such a financial move unless the President Barack Obama takes some solid steps to weigh down the country's pocketbook. Raising the debt ceiling will not mean an opportunity to spend more. Rather there has to be effective cuts on the spending floor to get better results.

• The current debt ceiling is $14.29 trillion and has been increased on a regular basis since it was created in 1917 at $11.5 billion.
• Not raising the debt limit could lead to a reduction in the US debt rating, a collapse of the stock market and interest rates to increase from their historic lows.
• The stock has already begun to sell off as investors move into less risky assets like treasuries and gold.
• Partisan politics have created the crisis with Republicans looking for a way to make a statement about the poor fiscal policies of the current Obama administration.
• Congressman Boehner's debt reduction plan raises the debt ceiling by $1 trillion immediately and cuts $1.2 trillion in spending right away. With the debt ceiling being raised again next year, and spending caps being be put in place that will help to balance the budget. Congressman Reid's plan raises the debt ceiling by $2.4 trillion and cuts $2.7 trillion over 10 years.

The Americans have soon started thinking the unthinkable. The major concern of their lives is to eliminate their debt burden and contribute the prosperity of the nation. With all the political talk hovering around the surging national debt and the deficit in the US, it's time to scour up some effective debt solutions that can help you deal with your credit card blues. Check out some such debt solutions available in the US market.

1. Non-profit credit counseling services: The American Consumer Credit Counseling (ACCC) will provide a debtor with non-profit debt counseling and financial education services. The certified and professionally trained debt counselors assist the struggling consumers by offering them workable solutions to their multiple debt issues. They will analyze your present financial condition, provide customized options based on your future financial goals and recommend money management techniques.

2. Debt management programs: Debt management programs will help you simplify your monthly unsecured obligations and get debt free in an easy and affordable way. Unsecured debts may include credit cards, department store cards, unsecured personal loans and other lines of credit. Once you're enrolled into a DMP, you can stick to making single monthly payments to the debt consultant. This amount will be disbursed off to your creditors in due time.

3. Debt settlement programs: The debt settlement consultants will offer you debt settlement programs for consumers who are overburdened with massive debt amount and are finding it impossible to repay the entire amount. Creditors will agree to a negotiable amount, which is much less than the actual amount owed by the debtor. Creditors agree to such arbitrations as they feel that some money is better than no money in case the debtor files bankruptcy. Though it has a negative impact on your credit score, you can go for immediate credit repair after settling your debts.

Almost everyone agrees that America is a nation of spenders and most spenders love to hate a budget. This is the reason for the brewing debt disaster in the US and if you want to overcome and survive in such tough financial circumstances, get help from the companies that provides you with simple and effective debt solutions.

Contributed By: DebtCC Community