When facing multiple debts at the same time, it might not be apparent what you can do to receive help. Each type of debt has a suitable way to be dealt with. Those who are in debt, however, may not know what these ways are. Many debt help services exist for the sole purpose of getting you out of debt. Here we will detail each of the debt help services available to you. We will also discuss how they can help you find your way out of debt.

Debt Help Services

Bankruptcy

The first of the debt help services can also be the most harmful depending on your situation. Filing for bankruptcy can have a major impact on your credit score among other things. However, bankruptcy will also do something that no other debt help services can do. Bankruptcy can eliminate your obligation to pay your lenders back. This can give you a clean financial slate to work with. While bankruptcy doesn’t discharge secured debt, most unsecured debts will be erased. Most people see bankruptcy as a last resort because of the negative aspects. This may be true, but it can also be the most effective way to deal with debt.

Debt Consolidation

One of the more preferred debt help services, debt consolidation organizes debt for you. Instead of dealing with multiple debts from different sources, you consolidate them into one debt using a loan or credit card. This has little benefit for those who struggle with making their debt payments to begin with. Debt consolidation does not lower your debt amount or relieve you of making payments. In fact, consolidation shouldn’t be attempted unless you’ve been able to make normal payments on your debts.

Credit Counseling

Credit counseling is all about educating you about your options. This is one of the debt help services that does nothing to your debt. counseling is more about letting you know what you can do for yourself. Most credit counselors will provide their services for free, if not for a small fee. You can stick with the program if you wish, but you have no obligation to do so. If you need some guidance on how to deal with debt, credit counseling can be ideal. However, another one of the debt help services might be more suitable if you have more pressing debt matters to attend to.

Debt Settlement

One of the debt help services that directly deals with debt, settlement can reduce the amount you need to pay in order to eliminate your debt for good. With the use of a debt settlement company (or, in some cases, on your own), you can negotiate to settle your unsecured debts for less. Debt settlement has an edge over other debt help services as it doesn’t require a credit check (debt consolidation), it doesn’t hinder your credit for ten years (bankruptcy) and it actually helps to reduce your debt (credit counseling). This can be the most useful debt help method available to those in need.