If you look around America today, you can see signs of our current economic crisis. Storefronts are closed, malls are ghost towns, jobs are scarce and more houses are foreclosed on a daily basis. Look around your neighborhood and you will probably see a few of the houses already with For Sale signs on the front lawn. It seems more and more Americans are swimming in the dangerous waters of debt and don’t know the first thing about getting out of this murky water.

Another problem is the devaluation of a college degree. Most students graduate with a bachelor’s degree and several thousands of dollars in student loan debt to find that they are competing with high school dropouts for jobs at Starbucks because nobody will hire them in their selected field.

The average American has around has over 8000 dollars in credit card debt and that does not take into consideration student loans and money owed to the Internal Revenue Service.

So, it is not a coincidence that thousands of companies have popped up overnight offering help with supposed debt relief solutions. With an overload of advertisements on television and the Internet, it makes the average consumer a little confused in deciding which method is right for debt solution.

It is this confusion that these companies prey on.

For those wanting a debt solution, there are several options available for debt relief. While some might appear attractive, even tempting, it is best to do your research and understand what you are getting involved in before you decide on a solution for your current debt problems.

The most common form of debt today comes from the overuse of credit cards. Many Americans have lived with a “spend now, pay later” attitude that credit companies have taken complete advantage of over the years. Most people only pay their monthly balance off and completely ignore the growing Annual Percentage Rate that keeps their debt growing while they are only paying the minimum.

In the world of loan sharking, this would be called “the vig”. A vig is the weekly interest on a loan that is over and above the loan itself. It is the vig that must be paid weekly and if it isn’t then that is when Tony Two-toes shows up at your door expecting the money.

Annual Percentage Rates and monthly minimum balances work in the same ways as loan sharks, by making the minimum payment you never work off the balance on the card.

This is just one of the ways credit card companies keep you in their debt.

Most debt solution proposals out there today revolve around credit card debt. Whether it is debt consolidation, debt settlement or debt management, the debt dealt with is primarily money owed to credit card companies. If you have other debt like from student loans or from the IRS, these companies can’t help you with those particular issues. Most student loan organizations will issue forbearance and the IRS will usually work out a payment plan if you contact them directly.

For those who are having trouble and are just starting to fall behind, then the first thing you want to try is credit counseling. There are a lot of credit-counseling agencies that are not attached to any companies and can offer you the right solutions for getting your life back on track. Before trying any of the next methods, you should try to find a credit counselor near you because they can suggest legitimate agencies that offer real help and not just businesses trying to profit from your financial situation.

Debt consolidation agencies have popped up all over the Internet and television promising to work with your credit card companies to lower your monthly payments and help you get out of debt. On the surface, these businesses seem like a great idea, but you have to look deeper into what they are offering. You might be paying less each month to your creditors but this money is now added to the back end of your debt and under higher APR rates and the fee the debt consolidator charges you monthly, you end up paying substantially more in the long run.

Also, your unsecured debt will most likely be transferred to your secured debt like your home and if you miss some payments they could take your house.

Debt settlement programs are an even shadier debt solution and these businesses still remain unregulated and unsupervised. These companies promise to work out a settlement with your creditors by reducing what you owe by 25, 50, or even 75% of what you owe. The problem is these debt settlement companies charge large fees for what they do and usually offer no guarantee to what they claim. Around 60% of those who go this route never see a settlement with their creditors and usually end up getting sued.

The fact is that you can negotiate your own settlement with credit card companies using the same methods that these companies use on your own.

Another debt solution that has shown up on the horizon is companies that offer a debt management plan. These companies will look over all your debt, consider your income and budget and work with your creditors to try to lower your monthly payments.

The only problems with debt management agencies are some of them are actually sponsored by businesses trying to coerce you into buying their debt consolidation and debt settlement packages. They claim to be non-profit but are actually in cahoots with for-profit companies. Lately, federal agencies have been shutting down these companies, but some still exist.

If you do decide to go with a debt management plan, make sure you investigate the agency you are using.

In the end, the best way to stay out of debt is to not get in debt in the first place. Many Americans are now learning to live within their means and only spend the money they earn.

It may seem like a hard idea, but it is not an impossible one.

Below I have included a video to help you with your debt solutions.