The good news about drowning in debt and bad credit is that there isn’t a lack of help. Assistance in the form of credit counseling, debt management, debt consolidation or debt negotiating seems to be sprouting up everywhere, from radio ads to email offers. If you’re going to start seriously shopping around for this type of financial help, how you figure out the bad guys from the good?

Figure out what needs to be done. Don’t become sold too fast on the promises debt reduction companies spin about eliminating your debt. Your best solution might be to just sit down with your bills and construct a better budget. Credit counseling is the least damaging when it comes to credit repair services and should be able to help you figure out how to divide your money, free of charge and contracts.

Look closely at your options. It can be confusing to figure out the difference between debt counseling and debt management. Even when you think you’ve got it right, many consumers find out later they still signed on for the wrong type of debt help. Read between the lines of the promises and study any contract you might enter.

Know sneaky tricks so-called debt repair companies use. Despite what’s being advertised, no repair company – no matter what they call themselves – has a special relationship with the three credit reporting agencies, credit card companies or the government. As this article states, the Federal Trade Commission has never seen a legitimate credit repair company.

Familiarize yourself with the Credit Repair Organization Act. This is another credit protection law to shield consumers from purchasing unfair, illegitimate or ineffective repair services. Here are five important credit laws you need to familiarize yourself with. A big one constantly broken is collecting fees before repair services are completed.

Understand your commitment. In some cases if you do hire a debt management company, this means you are taking out a new loan to pay off the old ones. Just make sure you are aware and prepared for changes that can happen with your both credit repair and budget.