Are you having a hard time to settle your debts? Harassed by the unending calls of collection agents? Or getting worried about losing your home or your car? You are certainly not alone. Many people are experiencing the same financial crisis in their lives and debt is the most common overpowering financial trouble of all time. However, debt can be overcome if you consider some of these options: a debt management program from a reputable organization, credit counseling, or bankruptcy.

As debt experts will tell you, the option that will best solve your financial problem will depend on the level of your debt, your personal discipline and your outlook towards the future. Here are some helpful ideas to know which option will best work for you.

Credit Counseling Services: If you are not disciplined enough to manage your finances, consider a credit counseling service to help you work out in solving your financial problems. A lot of reputable credit counseling organizations can advise you on how to handle your money and debt, help you develop a budget plan, and provide you with more tips and ideas on how you can actually manage your finances. Some of these credit counseling organizations claim to be non-profit; however, you should be aware that this doesn't always mean that their services are for free, legitimate or affordable. In fact, some of these organizations may charge high fees or advise consumers to make voluntary contributions that somehow cause more debt. So before you start working with any credit counseling organization, you should make sure that it has proven its reputation over time and that their counselors are certified and trained in areas of consumer credit, debt management, and budgeting.

Debt Management Program: If you find it difficult to handle your overwhelming debt, your credit counselors might recommend you to get a debt management program. A debt management plan alone is not credit counseling and this program does not apply to everyone. This program may actually help you lower debt interest rates, waive late fees and create a payment schedule which will benefit both you and your creditors.

You can enroll in a debt management program after your credit counselor reviews your financial status and has already provided you with a plan to manage your finances. However, even if you are qualified to enroll in a debt management plan, you can still take the advice of your credit counselor which can help you create a budget plan and teach you money management skills.

Bankruptcy: This is considered as the last resort of all debt reduction services. When you are declared as bankrupt, a court order will say that you don’t need to pay certain debts; however, the effect is long-lasting. Bankrupt information will stay on your credit report for over ten years which will make it difficult for you to obtain credit, get insurance, buy a home or sometimes get a job.

If you are still confused about the best option that will work with your current financial situation, you can take advantage of free consultations from experts of a debt reduction law center or other non-profit organizations that can provide you with more ideas about the different options available for you. Whatever option that is: credit counseling, debt management program, or bankruptcy, you must keep in mind that things will only work out just fine if you are disciplined enough and committed to the solutions offered.