Self-management Program

• Write down all debts, including what the current monthly payments are and the interest rates. List them in order from highest interest to lowest. Pay off your debt in this order. This will help save you money by eliminating higher interest rates first. Using the debt calculator listed in the Resources section, you can determine how much you can afford to put toward your debt a month. Then the calculator will break down that money into payments toward each debt. The payment amounts for the debts you are paying off first will be more than the minimum.
  
  

Debt Consolidation

• Consolidating your debt means combining all of your debts into one single debt. Your lenders will be paid and you will in turn pay your new lender. This debt-management system still requires you to pay the same amount that you owe, but with one bill instead of several different ones. Often, the interest rate for a debt consolidation loan is lower than other individual loans. Credit score, history, income and types of debt are considered to be approved for this type of debt management.
  
  

Credit Counseling

• If you do not trust yourself to set up a self-management plan, you can turn to a debt management professional to help you draw out a plan that your income can handle to solve your debt. This is known as credit counseling. Your counselor will work with your budget to create a plan for you that you can afford. In some cases, creditors may also lower your interest rates if they know you are working with a credit counselor.