Counseling

• If debtors cannot manage their own debts or negotiate lower payments with their creditors directly, they may consider working with a credit counselor to develop a workable repayment strategy. Credit counselors often enroll their clients in debt management programs that involve regular monthly payments.
  
  

Repayment Strategies

• Debtors may obtain a consolidation loan, using their homes as collateral, to help repay debts. Some companies offer debt negotiation programs that attempt to get creditors to accept a lesser amount, but the Federal Trade Commission warns that these programs do not always work as advertised.
  
  

Bankruptcy

• In the most serious cases, debtors may exercise their right to file for bankruptcy. Bankruptcy gives debtors protection from their creditors' attempts to collect, with the debtor's assets sold by a trustee and the resulting money distributed among the creditors. Because bankruptcy tarnishes debtors' credit ratings for 10 years, the Federal Trade Commission recommends it as a final option only.