If you are like many consumers, you are in debt over your head and now need help getting out.
 And, it is no longer a good idea to look for a deal on a balance transfer card in order to avoid making payments.
 Now is the time to concentrate on working your way out by using one of the two methods below.
Working with a reputable credit counseling agency is like putting a buffer between you and your creditors.
 As a matter of fact, most creditors approve of credit counseling agencies because it helps them recover money owed instead of facing the prospect of the client filing for bankruptcy in which they will get nothing.
Credit counseling organizations are very busy right now helping customers just like you.
 Here is what you can expect.
Credit counseling tasks.

• Negotiate with your creditors.
   These credit counselors will look at your total financial picture to see to whom you owe money and how much.
   As well they will look at your income to see how much you have to pay towards your bills.
   This is for everything, not just your credit cards.
   Then, once they have that information in hand, they will set up a plan to pay your creditors back over time.
  
• Repay the debts over time.
   This is the part that takes persistence and patience.
   You did not get into these debts overnight, and it will take you time to get out.
   You must stay with the program in order to complete it and get out of debt with your creditors.
   This will likely take you three or four years (maybe more) depending on how much you owe.
   During this time, do not try to obtain any more credit until you complete the program.
   Take the time to learn to live on a strict budget.
  
• Cost $10 to $50 per month.
   This method is the most cost effective between the two because the monthly payments are affordable and will work well with most budgets.
  

Pros: The monthly cost is affordable.
  Cons: They make your payments for you.
 You have to follow up yourself to make sure that they are indeed being submitted.
  Debt Settlement tasks

• Negotiate with your creditors.
   This is the same as in the step above except that you will be hiring a company to negotiate a final settlement with your creditors.
   This settlement will be an amount that will satisfy the creditors in full and your account will be closed.
   This only works if you have an amount of cash on hand that can satisfy the settlement amount regardless of what the account balance might be.
   Also, you should not pursue this unless you are ready to take action right away.
  
• One payment - the balance retired.
   With this option you will be paying one amount to your creditors which is based upon the settled amount.
   The rest of that balance is erased from your account.
  
• Cost $200 and up.
   These services are generally more expensive than is the credit counseling method.
  

Pros: One payment and you are done.
  Cons: The cost is higher.
 The debt settlement company might allow you to make payments but hold your money until you have enough to make a settlement offer.
 Then, they might recommend that you stop communicating with your creditors.
 Finally, the settlement amount might be rejected by the creditor.
Credit score and history ramifications.
 You will experience a hit to your credit when your accounts are closed.
 Your history will show the accounts settled instead of paid in full which is a red flag when you go to get additional credit.
As to which is better, you will have to do some homework in order to make the right choice for your situation.
 Whichever you chose, be sure to get started right away.