Consumer debt is one of the big problems with the economy in such a bad state. People are losing jobs and still going on year after year without even a cost of living adjustment in their wages. I recently found a site called Bills.com and they are an excellent resource with helping you save money and advice on how to handle debt.

One of the options is to of course consolidate debt but how you accomplish that can depend on several factors. Do you own a home that has equity in it? Consolidating several loans into one with a lower overall payment is effective if you have the credit rating to support it. There is a Debt Management Program that allows you to consolidate your debts sometimes with no interest and then make one payment to a management center. There is also Debt Negotiation which settles the debt with your creditors and then you make a lower monthly payment to pay off the settled debt. Debt Relief is the last option as it is the most drastic and includes write off of debt and even up to filing bankruptcy if necessary.

Your current situation is what will dictate the best way for you to get a handle on your debt. The consolidation loan is the best because it allows you to maintain your credit rating should an emergency come up. However, it is important to change your spending habits and not take on additional debt.