We've all heard terms like debt settlement and debt consolidation, but you may not really be clear on what they mean.Unfortunately, it's tricky to find solid information because so much of it is sales hype designed to get you into a program that creates profits for some other company. Finding the truth about debts isn't easy at all. But you probably know that it's in your best interest to get rid of debt, and not to accumulate more while trying to get rid of it.

Some debt settlement program companies really don't care about helping you settle debts as much as they care about getting your money. Some programs are little more than bandages that mask the problem for a while until you realize you've got in deeper. It's not always easy to spot these programs, so you need to really look into them to make sure that they can work for you.

The Best Debt Settlement Program

The best debt settlement program works with you and your creditors in a way that feels comfortable for you and satisfies your creditors. Watch out for programs that cut your payments and interest so low that it's almost unbelievable. It's all too easy to simply believe them because they claim to be "experts" only to find that your lower payments allowed your debt to build up even more quickly.

Many debt leads programs agree to these arrangements that allow you to pay less for six months to a year but the only thing that has changed is that you are paying less. Your interest rate, late fees and over limit fees, and any other fees they can tack on will still accumulate and you'll be more in debt when you're done with the program than when you started.

To find the best debt settlement program for you, look for a program that actually negotiates with the creditors to make sure that you're getting out of debt with each payment instead of watching your balances go up.

Debt settlement isn't always the best choice, and part of that reason is because there are so many companies that don't do a very good job of it. If you can find a company that comes up with a satisfactory arrangement for you and your creditors, and you can do the calculations and clearly see the day when you will be out of debt, then it's probably a great choice.

Debt Consolidation Loans

Debt consolidation loans are one way to help reduce your debt. This can be a good choice if you find a loan with good interest rates that will pay off all of your existing debt and leave you with one loan payment per month. The biggest danger in debt consolidation loans is that you will pay everything off, but then charge your credit cards back up or incur more debt on top of the one debt consolidation loan payment. If this is a possibility for you, and it is for many people, you should consider finding the best debt settlement company you can find and work on getting completely out of debt through negotiation and credit counseling.