Self-Help - When trying to solve your credit and debt problems, self-help is often the best place to start. Take a close look at your income and expenses and develop a budget to help curb excessive spending. Your public library may offer valuable information about budgeting and money management, and many communities offer low cost financial counseling services. You can also try contacting your creditors directly to negotiate adjusted payment plans. Be sure to challenge any incorrect or out-dated information that might be negatively impacting your credit. Also, remember that when your credit history is less-than-perfect, time and responsible money management are your best resources.

Credit Counseling - If self-help efforts are not sufficient to correct your debt problems you might want to consider seeking help from a credit counseling service. Credit counselors can help you work out a debt repayment plan and may even be able to help you reduce repayments with creditors. Some credit counseling services charge a monthly fee for their services, but others charge little or nothing for managing your plan.

Debt Consolidation - Debt consolidation using a second mortgage or home equity line of credit may help you lower your total cost of credit. This type of loan may add up cost-wise, but they may provide certain tax advantages not available with other kinds of credit. Before choosing debt consolidation as a debt solution, consider whether you'll be able to make the payments - these loans may require your home as collateral.

Credit Repair Services - Credit repair companies offer assistance with cleaning up your personal credit report. For a fee, they can assist you with disputing any inaccurate or outdated information on your credit report damaging your credit rating. Consider, however, that anything a credit repair clinic can legally do for you, you can do for yourself at little or no cost. And regardless of what some credit repair companies may claim they can do for you, nobody can legally remove accurate and timely negative information from your credit report. In truth, only time and a continual effort to repay your debts will improve your credit report.

Bankruptcy - Personal bankruptcy is generally considered the last resort of debt management. Although it is becoming an increasingly common choice for people trying to escape debt problems, the results are far-reaching and long-lasting. Bankruptcy will stay on your credit report for up to 10 years, and will likely make it difficult to obtain credit, purchase a home, receive life insurance, or even get a job. However, bankruptcy may offer a viable, legal option for people who can find no other way to resolve their debts. Consult with a financial and/or legal counselor to determine whether this option may be right for you.

Seeking help from a third-party or business that offers debt and credit solutions may seem like a great idea when your bills or credit become difficult to manage, but be cautious! Before commiting to anything, find out exactly what services the business provides and what it costs. Also, get everything in writing - don't rely on verbal promises. Most importantly, before doing business with anyone, check them out with your local consumer protection office and the Better Business Bureau in their location. These agencies should be able to tell you if other consumers have filed complaints about the business.