Are you looking for free money to pay off debt? You are probably not the only one and it is understandable, because there are a lot of advertisements out today that say they are giving away free money, but are they?

In the current economy, there is not much being given away. There are a number of sites that have free CDs for government grants and there is a possibility that you will find something there that will help you but, it is not likely that they will pay off all of your debt. Bottom line is--you charged it, you are going to have to deal with how it is going to be paid for.

Getting rid of your debt will take time, but anything worth having always does and that includes debt freedom. The first thing you need to do is find out where you stand and this is usually the scariest part. Many people who need debt relief have unopened bills and for awhile they may have been in denial about exactly what was happening in their lives.

There is help available. So, take the next right step and make a list of what you owe. If you have gotten to this point you would benefit by using a debt management company. There are many that now offer both credit counseling and debt settlement. And a reputable debt management company will also tell you when the only option you have is bankruptcy. But, the first step is to gather up all your bills and make a list of your monthly expenses.

A credit counseling company will consolidate your unsecured debt payments. They will also offer reduced interest rates (some may go as low as 0 percent) for credit card accounts and your fees will be eliminated. This option can take as long as 7 years, but normally takes about 5 years. You will come out of this with a fairly decent credit rating. Many people will actually see their credit score increase, because they have been making regular on time payments and they have less debt.

Debt settlement is the other debt relief option that is being widely utilized today. This method reduces the amount owed on your credit card balances through a negotiation process with your lenders. You will make monthly payments to your debt settlement company and they will in turn pay your lenders off, one at a time.

Using a debt settlement company will negatively impact your credit. But in most cases, the people who opt for debt settlement have had credit problems for a while already. The best thing for them to do is get the debt paid off and then work on rebuilding their credit.