If you are in severe debt, you are probably looking for a way out.  You may have considered options, like declaring bankruptcy, that could ruin your finances far into the foreseeable future.  However, while this may feel like a form of debt relief, there are other options out there to help you manage your debt. Debt relief consolidation, credit card counseling, and other debt management services are all options you should consider.

What Is Credit Debt Relief?

So, what types of credit card debt relief are really available?  While there are different names for the companies that help people with their debt problems, they all work in a very similar manner.  The goal of a good debt relief program should be two fold.  First, the goal should be to help you manage your existing debts so that you can start paying them down.  Second, they should strive to teach you how to manage your budget properly to avoid getting into more debt and free up money to pay down your existing debt.  There are several ways to go about achieving these two goals, but if your debt relief program does not focus on these two factors, it is not a good one.

Keep in mind that not every company claiming to be a credit card debt relief organization has your best interests in mind.  Some will simply help you file bankruptcy, and others will steal your personal information.  Look for a program that works to help you make a budget and pay down your debts, rather than offering you a quick fix to your problem.

Who Needs Debt Relief Programs?

While all credit card debt is difficult and financially harmful, not all people who have credit card debt need the help of a debt relief program.  In many situations, a debt relief consolidation or counseling program will not be much help, because these programs are not free.  If you are struggling with a manageable amount of debt, you can work on it on your own without paying someone else to help you with it.  To see if you are a good candidate for one of these programs, calculate how much you are paying each month as payment for your debts, not counting your mortgage.  If the total is 20% or more of your monthly income, you should consider a credit card debt relief program.

How These Programs Work

If you are a good candidate for a debt relief program, you need to find one that is a good fit for you.  Some popular and well-known programs include In Charge Debt Solutions (www.incharge.org), Care One Credit Counseling (www.careonecredit.com), and Franklin Debt Relief (www.franklindebtrelief.com). 

Once you have found a program, you will likely begin by discussing your session with a credit counselor.  Often this is offered as a free service to help you determine if you do, indeed, need the debt relief help.  Then, you will work with the counselor to make a budget.  Also, many of these programs will negotiate with your creditors to lower your monthly payment or interest rate to help you manage your debt.  This works to establish an affordable payment plan that you can achieve each month.  Often you will pay the debt relief organization each month, and the organization will pay your creditors for you, thus saving you from late fees and other charges.  There is usually a commission charged by these organizations for this service.  Since the debt relief consolidation is a once a month payment, it is easier to remember and often a lower sum than you were paying before enrolling in the program.

How Long Does It Take?

You will stay in the debt relief program as long as it takes to pay off your debts, unless you decide to stop.  The amount of time this takes is different for every person, depending on income and the amount of debt they have.  Typically the average person who sticks with a plan will pay off their debts in 3 to 5 years.

Can’t I Do This Myself?

Of course, you could pay down your debts and negotiate with your creditors on your own.  Many people do this quite effectively.  The benefit of using debt relief programs is that you will stay disciplined because you will be forced to continue making the same payment month after month.

What happens to the typical consumer when trying to get out of debt is that the individual pays down the balance on one credit card, and suddenly the monthly minimum payment is lower.  Instead of continuing to pay the same amount, that individual pockets the new money and spends it on unneeded things.  When using a debt relief program, you will not see those lowered monthly payments.  You will continue to pay the same amount month after month, thus working away at your debt.

If you are disciplined enough to do this on your own, then you should consider doing the process without help.  However, if you had that discipline, chances are you would not be in credit card debt trouble in the first place.  If you can see no way out of your current debt situation, take a serious look at the various debt relief organizations out there.