If you are suffering from heavy debts then you are probably looking for relief anywhere you can find it. Historically, consumers have been able to use their rising home values in order to find relief by paying down their debts with a 2nd or even 3rd mortgage loan.

Now that home values have declined, consumers have been searching for alternative debt relief services that they can use in order to consolidate their debt.

There are many companies out there all willing to help you get the relief that you need but first it is necessary to determine the type of relief that fits your own particular situation the best. We suggest that you first try CuraDebt, Debt Shield, or 123 Be Debt Free.

Debt Consolidation Companies

Keep in mind that debt consolidation is different from debt settlement or debt negotiation. Debt consolidation refers to companies that offer a loan to consolidate your other loans.

The debt negotiation or debt settlement companies offer you a way to keep your debts but lower your payments. So you have to first ask yourself what it is that you really need. Do you want to get another loan to consolidate your existing loans or do you want to pay a company to negotiate with your current debtors so that you can reduce your monthly payments?

Keep in mind that you don't get anything for free. The only way that your debts can magically go away is through a chapter 7 bankruptcy. A debt consolidation loan will probably cost less that debt reduction or debt settlement through negotiation. However, since you are in debt over your head, your credit rating has probably suffered along the way so getting an additional loan might not be that easy. It's certainly not impossible though.

There are plenty of debt consolidation companies who are willing to offer a loan to consolidate your debts but they might charge a hefty upfront fee as well as an unsavory interest rate. You simply have to shop around, way your options and decide which option would be best for your particular situation.

The debt negotiation companies advertise their relief services under a variety of monikers. You might find these companies listed as debt management, debt settlement, debt reduction, debt negotiation or debt elimination services. They all boil down to basically the same thing. These are companies that help you find relief by lowering the monthly payments on your existing debts.

Therefore, the best name for these types of relief companies would be debt negotiation services. They help you get relief by negotiating with your credit card companies and other creditors. When they contact your debtor, on your behalf, the creditor knows right up front that you are having financial difficulties. The general idea is that your creditor will prefer to negotiate a lower interest rate or forgive a portion of your indebtedness.

The reason why they might want to do this is because they know that people who are in this situation often turn to bankruptcy and that under the protection of bankruptcy, they could stand to get absolutely nothing from you. So they are willing to make some concessions in order to at least get something from you.

The debt negotiation companies make their money by charging you a fee for their services. The fee could be a one time payment but is often a percentage of the debt that you owe. There are many debt negotiation companies to choose from. When you are trying to decide which debt relief service to use, be sure to check with The Better Business Bureau to see if they are a reputable company.

Many companies list themselves as debt counseling services and offer advice about what to do with your debts. They claim to be able to help you find relief from your debts.

What you will probably find with most of these companies is that they are simply debt negotiation or loan consolidation companies that advertise as counseling services. They put up a front to make you believe that they are a nonprofit organization only interested in help their fellow man. You don't need to feel like they are pulling one over on you as this is a fairly common practice. In the end, you can only get debt relief through one of three basic options, debt consolidation loans, debt negotiation services or chapter 7 bankruptcy.