Are you deep in debt? Do you need a way out of the debt trap? If so, then you will be happy to know that there are several options available. Depending on the type of financial situation you are in, you can apply different options to your advantage and thus facilitate the process of reducing debt. Here are some of the options:

Option#1: Debt Consolidation
Debt consolidation is a good option for reducing debt especially if there are several bad debts and you are no longer able to manage on your own. If you have a large outstanding balance on multiple unsecured debts then you can opt for a debt management program to take care of all outstanding amounts in one payment. There are 2 different types of debt consolidation: unsecured and secured. Although debt consolidation is considered to be a good option, you should go for it only if you truly can't manage your debts anymore.

Option#2: Remortgage
A remortgage can initiate the process of reducing debt. With a remortgage, you will be able to consolidate all your loans in a single low interest loan.

Option#3: Debt Settlement
If you have large unsecured debts and if you are looking for a solution for reducing debt then this may be a good option. You will have to work with the lender or a debt settlement company to reduce your debt. The debt settlement company will speak to your lenders or creditors and negotiate a deal under which you will be required to pay only 50% of your actual loan amount. Once you have paid the amount, the lender will officially accept the debt to have been paid in full. Of course there are some potential drawbacks of this option including the fact that it will hamper your credit rating.

Finally, for questions about the right strategy for your situation you can always contact a non-profit credit counseling agency such as Debt Consolidation Connection. Their credit counselors can help analyze your situation free of charge.