Get the most out of debt management. Help yourself by filling out the form on the right to be contacted by a professional debt counselor.

Debt relief – forgiveness of what is owed by reducing the balance due, lowering the interest rate or modifying the payment terms, or a combination of these measures. This generally relates to credit counseling, debt settlement or bankruptcy.

Debt settlement – resolution of debt through negotiation with creditors. A lump-sum payment, which is less than the principal, is made. Sometimes referred to as debt reduction or debt negotiation.

Debt consolidation – a loan that is used to pay outstanding debts in which the consumer is usually given a lower interest rate. Frequently, property is used as collateral.

Chapter 7 bankruptcy – a federal court proceeding in which insolvent debtors are relieved of all liability and their assets are liquidated. It is removed from the consumer's credit profile after 10 years.

Chapter 13 bankruptcy – a federal court proceeding requiring debtors to adhere to a 3 to 5 year schedule for repaying their debts. It is removed from the consumer's credit profile after 7 years.

Credit counseling – another means of resolving debt. Together with their creditors, consumers create a repayment schedule with reduced late fees and lower interest rates.

Debt relief company– an organization that offers clients debt relief services, including debt settlement and credit counseling.

Credit score – a rating banks and financial institutions use to calculate an applicant's creditworthiness. It is an indication of the probability that this individual will default if their loan is approved. Both bankruptcy and debt settlement have a negative affect on consumers' credit scores.