For people facing substantial debt, credit consolidation may be the best solution. This gives the debtor the ability to manage unmanageable debts by combining multiple monthly payments into one payment that fits better into their budget.

Many Canadians struggle with credit card and other types of consumer debt. Some are even stuck in a cycle of opening one credit card to pay off another. In some circumstances, debt is racked up as a result of dealing with unexpected expenses such as home or auto repairs, illness, joblessness or divorce.

Before ever considering bankruptcy, there are some things you have to consider. The first thing is that bankruptcy is something that has very dire consequences. The consequences are so dire that you may find it difficult to obtain credit for the next 10 years.

Anyone who's capable of earning wages, salaries or commissions, can make use of this plan. It should in no way be thought of as bankruptcy. This is simply a court supervised method for a borrower to pay off his debts. The borrower simply draws up a plan to pay off his debts over a three-year period.

Debt consolidation is something that people turn to when they are unable to make their monthly payments on their unsecured debts. These debts include personal loans, credit cards, and anything else they owe money on that did not require collateral when the credit was extended.

A debt management company is where an individual turns when they feel too overwhelmed by their debt. They are looking to debt management because they are hanging on by the skin of their teeth or they have already fallen off the wagon.

When an individual feels that they are so far in debt that there is no way out, they may look to a debt management company to help them find a solution. This is because a debt management company provides their clients with a number of options to help them get themselves back on track.

Debt Consolidation, debt management, bankruptcy, credit repair and debt counselling are often intermingled and sometimes confused in terms of who they apply to and in which situations that are actually relevant. There are in fact a variety of differences in these terms that people really need to be aware of.

It's generally not worthwhile to advertise a credit counselling business on radio and TV, unless you do so, on a 'per inquiry' basis.