Credit Counseling

• A good way to start organizing your finances and gaining debt assistance is talking with a reputable non-profit credit counselor. A credit counselor can help you look over your current financial situation and help you to find a course of action. They can help you decide whether or not your solution might be as simple as budgeting or as extreme as bankruptcy by going over your monthly income and examining your total debt.
  
  

Debt Management Program

• A debt management program (DMP) is recommended for consumers with credit card debt that has become unmanageable. If you are unable to make your minimum monthly payments and are paying high interest rates, a DMP might be something to consider. Credit counselors work directly with your creditors to lower your rates, sometimes down to 0 percent, putting you on a payment program that can help you be debt free in two to five years.
  
  

Bankruptcy Options

• If you are unable to make any payments toward your credit cards and are receiving collection calls, filing bankruptcy might be a solution to your financial debt problems. There are two bankruptcy programs usually filed by consumers for most debt relief, Chapter 7 or Chapter 13. Chapter 7, which is the most extreme, eliminates most of your debts, and Chapter 13 puts you on a payment plan.
  
  Filing bankruptcy can relieve the pressure of collectors and debt but it can be costly to both your pocket book and your credit file. Lawyer fees are involved and your credit can be affected up to ten years when filing bankruptcy.
  
  

Hardship Programs

• Many creditors, such as Discover, offer hardship programs for financial debt assistance to their consumers. If you have recently lost your job, have run into medical issues, or are just struggling to make your monthly payments, then contact your creditor directly and ask them about available hardship programs. A hardship program temporarily lowers your rate or payment to an affordable amount while you are trying to get back on your feet financially.
  
  

Debt Settlement

• Debt settlement programs are offered by companies promising to lower your monthly payments dramatically as they work with your creditors to lower the balance owed to them. Unfortunately there is no guarantee with these programs, some creditors will not even negotiate, and the program fees can be considerable. It's important to ask many questions when considering this option and be alert that a creditor may end up suing you for payment if they do not agree upon a settlement.