If you are looking for help with your debt, there are 3 types of repayment options that are available. Here is a brief overview of what to expect from each of these options:

Debt Consolidation Loan-Typically a debt consolidation loan is secured with your home. So, if you do not own a home or are not credit worthy, this alternative will not work for you. You can consolidate high interest unsecured debt at a much lower interest rate and the interest is tax deductible. But there is a downside and that is that if you default on this loan the lender can foreclose on your home. You must also be aware that more than half of all people that consolidate their debts with a home equity loan have credit card debt again within a year. This reason alone makes this debt relief option less than desirable.

Credit Counseling-This is a form of debt consolidation that does not involve a loan. If you feel you need debt help, but have not gotten more than 2-3 months behind, this option will work well for you. You unsecured debts are consolidated through the credit counseling service. Your interest rates are reduced and fees are eliminated. It is important that you follow the agreed upon arrangements, because some lenders will drop you from the program if you do not make a payment every month. Debt counseling can have you debt free in 5 years with little negative impact to your credit. One of the biggest advantages to consumer credit counseling is the one monthly payment that you make to the agency. They will take care of disbursing that payment to your creditors.

Debt Settlement-This debt help alternative is a repayment of reduced balances of your unsecured debt. This option is a good alternative to bankruptcy. You must be aware that debt negotiation will impact your credit negatively, but most people that use this option have overwhelming debt or debt that has not been paid on in more than 3 months. At this point, your credit has already been affected negatively. The debt settlement company will negotiate reduced balances on all your credit cards and you will make monthly payments to an account. When there is enough money to pay the negotiated balance, it will be paid off. This will be done until all your balances are paid off.

Which one of these options you choose will depend on your current financial situation and your discipline. Getting credit card debt help is a big step, but it will be your first step toward debt freedom and financial stability.