If you're like many consumers, you may be having a hard time keeping up with your bills. Credit card balances, medical expenses and other unsecured debt can quickly add up, making it tough to make ends meet, let alone save for the future. Fortunately, you don't have to go it alone when it comes to finding debt-relief. Debt consolidation - which may be in the form of a loan, debt management plan or debt settlement - is one way to pay off your bills and get on the road to financial freedom.

In today's world of instant gratification, it may seem that debt consolidation is a quick fix - that is, an easy answer to managing unsecured credit card debt and other bills. And with so many lenders marketing debt consolidation loans with terms like "fast cash now" or "payday loans in 15 minutes," it's no wonder consumers have been conditioned to believe it really is that simple.

But if you do your homework, you'll find that - just as it likely took a while to accumulate your debts - it will take some time to break free of the revolving debt cycle.

In addition, the best lenders, credit card debt consolidation companies and other debt-relief agencies won't make false claims that lead you to believe you'll be on an easy path to debt-relief in record time. They'll explain all your options and work with you to develop a long-term solution to achieving your financial goals. A reputable company partners with the consumer by:

The term "debt consolidation" means different things to different people. Whether you're thinking in terms of a loan, settlement, or some other type of relief for your credit card and other unsecured debt, it's important to understand the differences between each plan. Each has features and benefits that appeal to certain consumers based on their individual financial needs - needs that may be different from your own. Let's take a look at debt consolidation loans, debt management plans and debt settlement plans so you know your options and can make an educated decision.

A debt consolidation loan typically allows you to pay off all your existing bills at once, while making a single, monthly payment to a new lender. With this option, you'll enter into a loan agreement with the new lender, who pays off your creditors. This allows you to consolidate all of your debt into one new loan - meaning you'll repay the new lender for the amount borrowed to pay off your other bills.

The interest rate you pay on the new loan may be higher than the interest rate on your credit cards or other unsecured debt. Discuss the interest rate, terms and monthly payment with the lender so you know what you're getting into with this option.

A Debt Management Plan (DMP), such as that offered by CareOne Services, Inc., may help you pay off your unsecured debts, including your credit card debts, in full in five years or less. By consolidating your debts into one, simple monthly payment, the DMP may offer significant savings in both interest and repayment terms.

CareOne also offers a Debt Settlement Plan (DSP). With debt settlement, we will work with you and your creditors to negotiate to pay back a portion of your unsecured debt. Rather than make monthly payments to your creditors, you'll instead make affordable monthly deposits into a trust account. This type of debt-relief plan will have a negative impact on your credit, so it's important to discuss this and all options with a qualified representative.