You are going to be able to save money and lower your rates and payments at the same time with bad debt consolidation. A company will do it all for you.

These advertisements seem to be everywhere you look. Businesses who prey on those who are overwhelmed with debt.

They tell you that debt relief is a simply click away, or cut your payments or interest rates in half.

These promises are extremely appealing to those who are sinking because of too much debt. They are willing to try anything to get it taken care of. Before you start looking at these companies, there are some things you should know.

Avoid the three negative choices most people make.

Getting a consolidation loan is not the best choice. The interest rates are very high. While your payments might seem lower, it is going to take longer to pay it off. Bottom line, you end up paying more over all.

Second, is the consolidators who claim to handle everything. They promise to make your life easier by getting you lower interest rates and lower the monthly payment. All you have to do is give them a onetime setup fee.

This could not be farther from the truth. They make your payment to the creditor and the creditor gives them anywhere from 10 to 15 percent of your payment. Think about that. You are paying a fee every month if you think about it.

You can negotiate for lower interest rates and stretching out your payments on your own. Do you really want to pay someone else to do it for you?

To those in this situation, it probably sounds like a good idea, especially considering the scare tactics that these companies like to use. Talk to a couple of companies and see what they tell you. They all offer similar programs. If they tell you that it is going to take 32 years for you to pay off your debt and they can cut that down to 4 and a half years, look for a financial calculator on the internet.

When you find one, put the numbers in. There is a good chance that you are going to find out that you can pay it off faster not using these companies.

Debt consolidation companies also have a reputation for making late payments or missing them all together. What is purpose in using their service?

When you initially transfer balances from one credit card to another with lower rates you may believe that you are doing the right thing. Unfortunately, the lower rates are for a limited time only. In order to keep a low rate, you will have to apply for another card again and again. This type of activity makes you look like a credit risk and definitely hurts your credit score.

Get in touch with your card companies if you choose this option. Tell them to put closed at consumers request and close the account.

There are some good moves you can make to help with your bad debt situation.

For a tax deduction and low rates, you might apply for a home equity loan. Use this money to take care of your debt.

You can also refinance your home if you have equity built up. Pay off your debt with the money you receive.

Alternative options are negotiating, personal loans or refinancing your car.

Layla Vanderbilt is the webmaster for a leading website that offers for debt consolidation advice and guidance.