Consumers may find themselves in difficult financial situations for various reasons. Job loss, changes in income, the birth of new children, divorce and other factors can lead to a dependence on credit cards and an accumulation of debt that eventually becomes unmanageable. To break out of this cycle and achieve better financial health, it may be beneficial to consider debt consolidation or other options for debt relief.

Some credit card companies offer debt management or counseling services. This may include budgeting help or financial management education to help the cardholder manage his or her money effectively. Debt settlement companies can advocate on behalf of a cardholder, negotiating balances down to a more manageable level.

With debt settlement, consolidation or management, a consumer will still owe money to creditors. He or she may continue to experience pressure and harassment from creditors who want to collect payments, even after applying for any of these options. There are times when any of these choices could be a smart course of action for a consumer, but he or she will still have to make consistent payments. For some, these are only short-term fixes for a long-term problem.

One option for Louisiana consumers is bankruptcy. This process allows for the discharge of certain debts, allowing the applicant to achieve better financial health. Whether someone is considering debt consolidation, bankruptcy or another option for dealing with debt, it may be helpful to speak with an experienced attorney and seek an explanation of the pros and cons of any decisions before moving forward.