You may not want to pay set-up and monthly fees by using a credit counseling agency. Likewise, if you only have a few hundred dollars of debt or good credit, using an agency might be a waste of time and money since you might be able to handle it yourself.
Although applying for more debt might seem counterintuitive, you can use a personal loan to pay off your existing debts. Instead of having multiple creditors and monthly payments, you can pay them and only have a single payment for your personal loan.
A personal loan often has better rates than credit cards. Credit card percentage rates are typically in the high 20s to low 40. A personal loan can have a rate less than 10 percent, or 5 percent, if you have great credit.
If you have non-credit card debt, you may want to choose a different avenue.
For instance, you can work directly with the Internal Revenue Service (IRS) to create a repayment plan for any taxes you owe.
It is best to contact the IRS sooner than later since the agency enforces penalty fees for delays.
Each month you do not pay your taxes or set up a payment plan, your interest rate will increase.
If you are so far into debt there is no way for you to make the minimum payment, you might consider bankruptcy.
Bankruptcy should be a last-resort option. It will lower your credit score and can take seven to ten years to fall off of your credit history.