The internet is full of advice and companies willing to help you with your debt. There are three types of companies out there that can help you. It is important to understand which company does what and how it suits you and your debt. For example you may have come into a lump sum of money, so negotiating a monthly payment may not be the best route for you.

Consolidation Loans

This type of loan is mainly for home owners but is available to tenants depending on how much is needed and what state your credit is in. What this type of loan does is all of your debts e.g. credit cards, loans, auto loans, and overdrafts etc get bundled into one loan with one monthly payment. This means you will not be paying interest to several companies and your payments will be more affordable.

Settlement of debts

These companies work on behalf of you for a small fee. They will take control of your debts and negotiate with your debtors to lower your interest and even cut the amount you owe. Also charges and fees that you have incurred for late payments can be removed. What you will end up with is a small monthly payment that you pay to the company and in turn they will pay it strait to the people you owe money to.

Debt management

This is a free option which is usually run by non profit organizations. They do not take on your debt or offer any loans, but they do give help and advice. Expect to have a counselor or some one as a point of contact, they will give you advice and even help you with a payment schedule. This should be the first place any person should go because they can point you in the right direction as it is not in there interest to make money from you.