It is when the debt becomes unmanageable that people start a frantic search for debt relief measures like debt consolidation program. Debt becomes unmanageable when the income of the debtor is limited and falls short of servicing the debts of the debtor.

There are several reasons for the debt becoming unmanageable. The current recession has resulted in the income reduction, many job layoffs, and hike in the prices of the basic necessary commodities. As a consequence of the current recession the current applicable rate of interest is also on the rise. These sort of financial circumstances have worsened the financial situation of especially those who are already marooned in debt.

Many people have been indebted just because they do not know about the modus operandi of the credit card operators especially about the rate of interest ranging from 15% to 20%. The people with multiple card debt usually have to resort to credit card debt consolidation loan program.

The financial institutions and lenders in the market can offer professional assistance to make the indebted person debt free. This professional assistance for debt relief can be in the form of debt settlement, debt management, debt consolidation program and finally bankruptcy.

Debt settlement is an option in which the lender or the creditor becomes ready to receive lump sum money to discharge the debt. In this option the debtor has to negotiate with the lender or the creditor about the lump sum that the lender or the creditor would be ready to accept to nullify the debt. Usually the sum is less than the total debt but this has to be paid at one go and not by installment.

Debt management is an option in which the lender or the creditor is ready to accept a sum of money in installments over a period of time for the discharge of the debt. This is usually preceded by the negotiations between the representatives of the debt management company and the lenders or creditors of the debtors. There are many financial situation offering debt management services but the charges for the services vary.

The other option of debt relief is debt consolidation program. Debt consolidation is substitution of multiple debts with a single debt. The benefits of debt consolidation include the reduction of the overall debt, monthly payment and even the applicable rate of interest. Debt consolidation offers mental stress relief because the debtor is relieved from having to remember the dates and amount for servicing multiple debts. Before availing services of any debt consolidation company the debtor should check the authenticity, reliability, effectiveness at reduction of debt and finally the terms and conditions for availing the services.