To tackle a huge task like paying off your debts, assembling a team is a natural reaction. This type of help has many names: debt settlement or solution, credit counseling, debt management or reduction programs and debt consolidation.

While it certainly sounds enticing to have someone else speak to your creditors with amounts owed sliced in half, erased, or in one easy payment, at what cost does it come to our credit?

Settlements will be reported. Even if you go with a debt consolidator who convinces all lenders involved to settle for much less, the original creditor are still going to report you’ve entered a “DMP” or Debt Management Program. This is interpreted as a risk to future lenders and takes years before it can be erased.

If you aren’t careful, something worse will show up. A surprising number of debt reduction programs aren’t looking out for your best interest. In fact, many will come right now and explain defaulting on your current accounts is part of the process. Don’t believe these guys. Being delinquent is a last resort and something you can do quite easily on your own.

Despite efforts, you might not get any help. Meaning a debt negotiator or credit counselor doesn’t have a magic wand to reduce interest rates or amount owed, sending you back to square one with your accounts still in jeopardy because you cannot pay. However, a good agency is skilled at helping you review your debts and creating a budget whether or not you decide to hire their services.

Forget about a team if the damage is already done. Many debt solution agencies won’t help if your accounts are more than 60 days past due. At this point, your credit is already taking some hard hits as payment history accounts for 35% of your FICO score. You’ll have to work out a payment plan on your own with the lenders. As scary as this sounds, remember many creditors realize something is better than nothing and will work with you especially if they see you might default.