If you need to eliminate debt and feel desperate

If you need to eliminate debt and feel desperate, you might borrow from your own 401k. This gives you the power to borrow your own money instead of a banks. Be certain you have every detail in place, and realize that is risky because that is your retirement you're taking from.

Ask how the debt consolidation counselors are paid. A reputable credit counselor is paid a salary; however, there are many companies that pay through commission. This type of pay should be avoided because the counselors may be swayed by the amount of commission they will make off of your debt consolidation.

Consider the fees that you're going to be paying to the debt consolidation company. They should give you a fee structure that is detailed and explains all service charges. The debt professionals shouldn't be taking money until services are performed. Don't agree to pay them fees to set up your account.