If you are struggling through your overwhelming debts, you might have a variety of options to overcome this situation. Your ultimate goal should be to achieve a debt free life. In order to become free of your debts, you will have to consider two vital aspects. How much do you owe to your creditors and what kind of debts you have so that you can cautiously plan your moves to achieve your goals?

• A debt solution plan might include:

Self repayment plan: This is a kind of plan in which you pay your debts on your own. You will need to create a budget, exercise extreme control on your financial decisions and work to pay off your debts. This plan in not for everyone, but if you give a try and stick to your goals, you will get great results at the end.

Debt settlements: In the debt settlement program, you will be represented by a debt negotiator who will explain your financial situation to your creditors and knock down the total balance to something less than half so that you can it off in a lump sum amount. It is a good idea to make sure that you are aware of all the policies, terms and conditions when using this type of debt solution.

Debt consolidation or Credit Counseling: In a debt consolidation program, you will have all your debts combined into one monthly payment plan. You may find a company who can negotiate with your creditors and reduce the interest rates and set lower monthly payments with your creditors.

Debt consolidation loan: This is the same idea as consolidating, only with a loan. Here you have one payment instead of several payments. You get this kind of loan at a cheaper interest rate from what you are paying to your creditors.

Using A Credit Union: When you work with a credit union, you may qualify for a loan with an extreme low interest rate, which would work in the same way as a consolidation loan. The only difference is that here you don’t have to hire any company to work on your behalf with your creditors. You can take care of your debts on your own.

Obtaining a Home Equity Loan: Borrowing against the equity within your home may be the best debt solution for homeowners, simply because it could be affordable and very easy to maintain.

Insurance: This may not be a good debt solution for some people; however, any cash value available on your insurance might be a great way to eliminate your debts.

Credit Cards: If you have multiple credit cards and have good credit standing, then only consider this option and do a balance transfer. If you cannot manage your finances properly, then you will get deeper into credit card debts.

Bankruptcy: This is debt solution is only as a last resort. You should have tried everything above this before you even think about this option. When you file bankruptcy, you are marring your credit report, beyond repair, for at least seven years and up to ten years. You do not have the ability to correct or remove a bankruptcy. However, with other option, you have the ability to show creditors you are turning your financial life around.