There are various helpline for getting help on debts.
Amongst the various modes of getting help for debts are debt consolidation programs which include debt consolidation loans, debt reduction, debt settlement and credit card counseling.
Earlier bankruptcy was considered to be one of the most preferred forms for getting rid of debt problems.
But this process leads to very low credit scores and other financial problems also.
Hence bankruptcy should be kept as the last resort for getting out of debts.
However there are various other options through which debts can settled easily.
One of the most used forms of clearing debts is debt consolidation loans.
Here the debtors are provided with a new loan which includes all previous debts.
There is a single monthly payment for the same but at lower interest rates.
The gradual settlement of debts proves to be very helpful for debtors.
The process of debt reduction and debt settlement is relatively similar.
These include negotiations with creditors, through professionals or by the debtors themselves, so that the principal amount of the debt and the monthly installment can be reduced or settled.
Credit counseling is one of the best counseling methods for regulating expenses and better management of finances.
Here a professional counselor provides guidance on controlling frivolous expenses and irregular availability of financial tools.
All these options are there to provide debtors with debt clearance options.
But one of the most used debt help options are combining debt consolidation with credit counseling because here debtors can manage their finances better so that future debts can be avoided.
Even the credit scores are improved through the same.