Debt Help – Debt Consolidation

Most of us have debt problems, but the sad thing is that we keep spending our money and getting deeper into debt. The situation gets worse when one misses a few payments or some creditor sends a debt reminder, but most of us continue to spend without really thinking about paying off our debts. Then, suddenly, they start getting bigger. So how do we get out from under the debt we are in without having to file for bankruptcy? The answer is debt help, which can either come in the form of debt settlement or debt consolidation.

When you talk about debt consolidation, you are usually talking about taking all your small debts and combine them into a single debt that has a lower interest rate. By doing this, you will have a lower interest payment overall and be able to pay off your debt faster. The lower interest rates combined with the monthly payments make it easier and less stressful to pay off the debt. Debt management is another option. This option means that you contact a debt management agency and they contact your creditors on your behalf. They negotiate with the creditors to lower interest rates and to reduce the amount of debt.

Both debt help and debt consolidation require some sort of personal counselling. These counselling sessions can be done by phone, email or in person. If you decide to use the phone, online counselling is now available. Online counselling works in the same way as phone counselling, except that you can meet the counsellor online. This makes it much easier for you to find the debt help that you need in a short period of time, so you don’t miss any payments and the counsellor can help you work out a budget.

Both debt management and debt help require some type of debt relief plan. A debt relief plan consists of a debt consolidation loan and regular payments on an account where the debt management company keeps a percentage of your payments. The debt settlement company will take care of making sure that you’re debt free, so you only have one monthly payment instead of numerous. With debt help and debt management, you might also have to get a co-signer to sign for you if you don’t have enough money to make your payments. This is not necessary with debt relief.

Both debt help and debt consolidation require that you follow through with the debt relief plan. If you don’t, then either option won’t work. If you don’t follow through with debt relief, then you’ll still owe all the debt, but with a smaller amount. However, if you do follow through with debt consolidation, your credit report will reflect that you’ve completed debt relief, and your credit score will improve.

So debt help and debt consolidation aren’t the same thing. One doesn’t require a co-signer, and the other requires that you follow through with the debt help plan that’s offered. And although there are benefits to one or the other, they’re not mutually exclusive. Debt help can help you get out of debt, but it doesn’t have to involve debt management – if you work with a debt counsellor or a debt consolidation service, you can end up with a debt management plan. Your credit report may still reflect a debt management plan even if you’ve completed it, though. For more info on debt relief visit