Debt Consolidation

Do you need help with your credit card debt? Then you've probably seen the countless tv ads saying that your payments can be cut in half or more by working with a debt consolidation company.

First, you should understand that what is commonly refered to as 'debt consolidation' is actually 3 different products - debt management plans, debt settlement and debt consolidation loans.

Make sure you understand the difference and choose the right product for your situation. Many companies only provide one or two of the options and will sell you their product even if it is not right for you.

Researching your credit counseling agency

1. Do research on your credit counseling agency at your local BBB
2. Google "'Credit Counseling Company' review" and "'Credit Counseling Company' feedback".
3. Make sure they explain all of your options to get out of debt and explain your options. One-size-fits-all companies are common and can be dangerous.

For more information, read Knee Deep in Debt

Reasons to consider getting help with debt

There are many different reasons that can lead to a drop in income, and you may be caught completely unprepared. Common causes include illness or injury, divorce, losing your job, birth of a baby or retirement. For more resources to protect your family welfare, read When Your Income Drops: Plan to Pay Creditors and Promoting the Health and Well-Being of Families During Difficult Times.