If you are struggling with debt, the very first thing you must do is stop using your credit cards. Slice them up and throw them away. Taking on more debt is not an option until you have taken care of your debt problem. Pay off the smallest debts while paying minimum payments on your bigger debt, then start putting more into the larger debts. If you are still struggling, look for help through debt consolidation.

Debt consolidation is an umbrella term, meaning there are a few different ways it can be done. Do some exploring to find the right option for your circumstances. For those who have equity in a home, a low interest loan based on that equity could be the answer.

If a home equity loan is not possible for you, there are debt consolidation companies that offer other ways of consolidating and settling debt. Companies with good reputations are often able to mediate between you and your creditors. By doing so, they may get interest rates lowered and even be able to help you settle for less than you owe. The rest of the debt is then lumped into one by either an unsecured loan or an offer to distribute payments for you. The interest is usually lowered and the payment is lower than you were paying when dealing with them all on your own. They do charge a fee for their services and it is added to your monthly payment.

As with any other business, there are good and bad consolidation companies. Read consumer reviews and look into backgrounds before choosing a consolidation company. Find out what the company offers upfront. Ask them about their services and get a detailed list of fees for these services. One of the most important services a debt consolidation company can offer is credit counseling. This service can provide you with the tools you need to become debt free and stay that way.

Never consider bankruptcy until you have at least looked into debt consolidation. If you go through a quality company, you will be glad you chose to consolidate.