Have you looked in your bill drawer lately? Afraid of what you'll find in those unopened envelopes? Or do you just feel so defeated by your debt that you figure, "Why bother?" But you should bother. It's important. It's your credit, and if you ruin it, it can effect more areas of your life than you realize.

Regain Control

If you want to regain control of your finances, your best bet is to find a good, solid debt reduction program. The kind of debt reduction program you get will depend on the kind of debt you have and your resources. If you go the professional route, there are five different debt reduction programs:

• Debt settlement - Through this debt reduction program, a debt settlement company contacts all your creditors to get your balances reduced by 60-80%. if your creditors agree to this, they will want their money right away, so you better have a lot saved up.
• Debt Consolidation Loan - This is a loan given to you to pay off all your unsecured debts. leaving you with only the loan to pay back. However, to reduce debts this way, you have to have collateral. But because the interest rate on the loan is so low, you can be out of debt in five years!
• Debt Consolidation Mortgage - For this debt reduction program, you have to be a homeowner. What happens is that you get a loan from your mortgage company to pay off your debts, then the amount of that loan is added to your mortgage. So you're essentially paying off all your unsecured debt at the same interest rate as your mortgage. Your mortgage payment does go up, but not by much. And besides, you get to write off some of the interest from your mortgage on your taxes, so it's a double-bonus!
• Debt consolidation - This is a debt management program for anyone through which a debt consolidation company contacts your creditors to get your interest rates lowered and possibly get past fees removed. Then the new, lower balances are all bundled together and you make one payment to the debt consolidation company each month. They make sure your creditors get their money, and you are debt free in five years!
• Student Loan Debt Consolidation - This combines all of your unpaid student loans, gives them one low interest rate and lowers your monthly payments by as much as 50%. Plain and simple as that.

If you enroll in one of these programs, you should also consider getting some credit counseling. This will teach you the skills you need to stay out of debt forever!

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