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Your options for this are pretty limited. First, you can go with a simple debt consolidation, which is taking out one loan to cover the rest of your debt at a low interest rate and monthly payment. Or, on the other hand, you can declare Chapter 13 bankruptcy, which is the payment of all of your debt over a period of three to five years. For many, many reasons, the former is definitely the better option if you wish to secure a good and reliable financial future.

The first and largest reason for this is that declaring bankruptcy is the single worst thing that you may do to damage your credit. Nothing else comes close. Declaring bankruptcy will mean that for the next five to seven years, until it expires, you will not be able to get any more loans or credit at a reasonable rate. Debt consolidation, by contrast, if you are able to keep up with the payments, will almost never hurt your credit score at all.

Furthermore, if you choose to "consolidate" through Chapter 13 bankruptcy, you'll have to go at it alone, unless you wish to pay extra to secure the services of a financial expert. If you consolidate your debt, you will frequently find that services offer free financial planning and advice just for the cost of the interest that you are already paying on your loan. This means that if you follow the given advice, you can probably be sure that even once you are out of this financial hole, you won't fall back in. The same is not true of Chapter 13. In fact, the majority of that kind of bankruptcy fail.

Finally, there is the fact that the law is not a forgiving thing. Chapter 13 bankruptcy leaves absolutely no room in what they define you being able to pay. The law requires that your debt be paid off over a period of three to five years, so you would probably find that you will have no money whatsoever for luxuries in that time. On the other hand, with consolidation, you will be dealing with real people, who understand your dilemma, and will have a much more forgiving debt plan. This is particularly true because there will be no limit to the length of your loan.

Finally, by researching and then comparing several debit consolidation agencies, consumers will be able to identify the agency that meet your specific financial situation, plus the cheapest interest rate the market is offering. Nonetheless, it is recommendable working with a seasoned and reliable debit counselor before even make any decision, this way you will save time through seasoned advise & cash by getting better results in a shorter period of time.

Hector Milla is editor of the Free Debt Consolidation Quotes website – where you can see his top rated debit consolidation service recommendation.

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Tags: Debt, debt consolidation, debt relief, debts