Debt can get to be too much to handle, especially during these tough economic times. If you start to look for help with your debt problem, you soon are going to realize there are three basic kinds of debt relief consolidation: debt consolidation loans, credit card balance transfers, and credit management or counseling agencies.




In the instance of a debt consolidation loan, a lender will pay off a number of your debts and make a new loan for you that will have lower monthly payments than the combined payments of the original debts. Credit card companies could offer you debt relief consolidation using a balance transfer arrangement. What this means is they will let you have you a lower rate than you already have on your other credit cards, so long as you transfer the balances of those high rate cards to the new account. At first glance this looks like a simple way to save money because you’re getting a lower rate, but watch out: often those low rates are only for a short period of time.

Finally, credit counseling agencies may offer debt relief consolidation by working directly with your creditors to set up alternative arrangements for your existing debts. They may negotiate with the lenders to lower your monthly payments, your interest rate, and sometimes even the total amount you owe. If you choose a credit counseling agency for debt relief consolidation, note that most have a fee for their services. In some instances the consumer pays the fee, in others, the lenders pay it. So it definitely pays for you to get all the facts before you agree to any debt relief consolidation arrangement.