Sure, you could always try to clean up your debt yourself, but there are numerous benefits of going through a professional debt reduction program to help you get through everything. Many reuterszone consumers find it difficult to negotiate with their creditors. Once you get behind on just one payment, the calls and letters will start coming in. The more behind you get with all of your creditors, you'll be bombarded constantly. Before you know it, you'll owe several times more than what you originally owed due to the always-increasing interest.

There is always the possibility of being sued as well, and the creditors do have the leverage. You ARE protected by some laws about how creditors and collection agencies contact you. You can always order them to stop contacting you, but some third party debt collectors play dirty and will try to find some way to get to you. It's much easier (and stress-free) just to have an expert handle everything on your behalf and order them to stop. Once you begin with a debt reduction program, those calls and letters will all stop and your chances of getting sued will be reduced.

Some of these programs involve negotiators who will help you decide on the right solution for your current and future financial situation, and may even be able to bulk deals together to secure you the best possible settlement percentages. On your end, you'll likely be expected to fund an account specifically for the purpose of making the payments. Some debt relief companies will allow you to control that account.

There are other options, of course, such as consolidation and even bankruptcy, but it's better to stick with a debt management program and get back on track if possible. A consolidation loan should only be considered if there are just too many accounts you are behind on, and you're having a lot of trouble making payments on all of them and getting behind on interest. Bankruptcy should only be considered as the absolute last resort. A debt counselor will help you decide on the best course of action to take.

Debt Reduction Programs For Various Kinds of Debt

There is a limit to the types of debts you can get help with. While some debts vary from one company to another, here is a quick look at some of the debts you can generally find help for:

• Major credit cards

• Most department store cards

• Some business debts (unsecured)

• unsecured personal loans

• Old cell phone bills

• Gas cards

• Back rent (if you are no longer a tenant)

• Repossession Deficiency Balances

• Back taxes