Wise debt negotiation and bill consolidation is essential. If you are already in a lot of debt then good debt management is even more important. A credit counselor can teach you the basics of debt management and how to stay ahead of the game.

Lets begin at the beginning. What is "Debt Management"? This name has become an umbrella for a large group of debt-environment functions and activities:

• Debt negotiation
• Bill Consolidation
• Debt reduction
• Debt settlement
• Bankruptcy
• Credit repair clinics
• Deciphering credit reports

On a debt negotiation and bill consolidation management plan, you repay creditors 100% of what is owed with the exception of interest concessions the companies may or may not make. You do not lose any assets. Under bankruptcy you may. 

Many creditors will consider granting a person credit once they graduate from the program. With bankruptcy, you may be able to get credit but it may be much more difficult and you could pay much higher interest rates. Creditors may report your accounts as "slow pay" or "not paying as agreed". Some creditors will actually bring the accounts current and a person's credit looks better than it did before. The information reported by creditors stays on your credit report for 7 years. With bankruptcy, it shows as a bankruptcy and stays on your report for 10 years.

Debt negotiation and bill consolidation will get out of debt sooner than any other method.