You may find yourself dumbfounded by the time you discover just how big the amount of debts you have is. From business loan to personal loan to medical bills to credit card bills, everything seems to be originated from debts. And this will easily be the source of depression for you; there is no doubt in that. It is easy to understand why you keep making debts in the first place, though. After all, unless you are born filthy rich, it is rather impossible to survive these days without relying on debts. Things are not affordably cheap. If you get sick, the bills will come back haunting you. If your payout does not seem to be able to cover all the bases, personal loan is the only logical solution. If your business runs out of capital, business loans would be able to hold it up. And credit cards seem to be able to solve all of these things. But they come with a price. All those loans and cash borrowed from others need to be paid and there is a chance that you cannot pay them off properly. Upon being hit with realization, you are forced to find a solution that can put an end to the struggle you are facing at the moment.

There are three types of solutions you can take to deal with this matter: debt consolidation, debt management, and debt settlement. When you decide on taking a debt consolidation service, multiple payment obligations you have in hand will be merged as one loan. The loan in question should come with an interest rate that is way more affordable so you will not be burdened by more consequences in the process. However, to be able to enjoy the facility it offers, you need to state the kind of collateral you will use. Upon setting collateral, you would be deemed qualified for the service. As such, this option bears the highest risk for you as far as a solution is concerned. See, when you fail to go through the program, that collateral you put forth in the beginning will be gone.

Debt management requires you to enroll every kind of debts you have to an agency. The agency will see all of the creditors involved and negotiate new interest rate that is favorable for both you and the creditors. However, there is a chance that you will still need to pay the debts in their original amount, which is hard—you would not need a help in the first place if you could just pay the debts according to their original stated amounts. In debt settlement, you will receive a help from an agency as well, except the agency will try to negotiate with creditors to seek for reduced amounts of debt. You will have to setup a special account for this purpose, in which you store funds used in paying of the debts post-settlement. The funds will also be used to pay the agency for its service, which will only be paid once the agency settles at least one of your debts.