Facing a credit card debt problem is stressful and overwhelming, but there are resources to assist you in overcoming the challenge. It is important to know there is not one solution that is right for everyone. You must take time to consider your options and talk to your lenders, credit agencies and trusted advisers. Options to consider include debt consolidation, debt refinancing, debt settlement and bankruptcy.

Debt Consolidation

Debt consolidation is right for people who have multiple outstanding debts with more than one lender. You will benefit by going through a process that leaves you with one monthly payment. The monthly payment will not necessarily be "low," this depends on the terms you negotiate and how long you will give yourself to pay back debt. Debt consolidation is typically done through an agency which provides you a loan to pay off all your debts. The agency may also address your credit problem by negotiating down some of the debt with your lenders.

Debt Refinancing

Debt refinancing is right for people who have one or more loans with high interest rates. If your interest rates are preventing you from paying down your principal, debt refinancing may offer you both a lower cost to borrowing and lower monthly payments. Debt refinancing can be achieved on one or more existing credit lines. It may be offered through debt agencies or by moving your credit line to another credit card with a lower rate. Paying off one credit card with another will negatively affect your credit score, however.

Debt Settlement

Debt settlement is right for people with the cash to provide a lump sum rather quickly. You may be able to negotiate with your lender to pay a significant portion of your debt immediately. Lenders may be willing to accept this option because they are guaranteed to recover at least a portion of the loan without a waiting period or further monthly payments. Debt negotiation agencies may be successful at settlement proceedings because they have existing relationships with banks.

High Risk Personal Loan

High risk personal loans are right for those who are facing an immediate financial crisis but will likely be in a better situation in the near future. For example, if you have had a costly illness, lost your job or gone through a divorce, you may be short on the cash needed to pay your bills and have bad credit. Your credit card debt problem can be erased by seeking a loan to pay off your existing debt. If you believe your situation will change and you can pay off the new loan on time, you may be able to save your credit.

Bankruptcy

Bankruptcy is often considered the option of last resort for those who do not have sufficient assets to enter debt negotiation talks. The word "bankruptcy" is threatening, but it is a protection the legal system has in place to keep consumers safe. If you qualify for bankruptcy, do not run and hide. Hear your advisers out to determine if it is the right solution.

Be Careful

No matter which option you choose, you have the responsibility to look out for your best interest. Ensure you are working with a debt agency you can trust. Ask for recommendations from your bank, lawyer or accountant. If you have a family member or friend who can recommend a service, take this as a vote of confidence in that agency. Many people are willing to help you with your credit card debt problem. Others will look to profit off of your situation. Use your best judgment and build a relationship with the person you trust to guide your financial future.