If you’re like many people, then at one time or another you have been in some type of debt. There are lots of choices available to start chipping away at the money owed. Some of these options sound too good to be true, and sometimes they are. If you end up making some bad debt consolidation moves, you will be worse off than you were to begin with. Below are 6 tips to help you stop the downward spiral and become debt free.

1. Many credit cards will make enticing offers for opening a new account with their company. They often give no interest balance transfer deals if you move your balance from another card onto this new card. While this may seem like the end to your finance charge woes, be aware that the deal has a time limit. You must pay off the transferred balance before time is up or you will end up paying the interest on the new card. The APR on the new card can also be higher than the old card. You must be careful using this method because if you transfer balances too often, it can lead to a decline in your credit score.

2. Some people turn to debt consolidation loans to help pay off the money that they owe. These loans aren’t always the best choice because sometimes they have higher interest rates than the card that is currently being paid off. The benefit is that they will give you lower monthly payments, but only to bite you in the end.

3. Make sure you know the facts before working with a debt consolidation firm. While they will work with creditors to lower your monthly payments, they often take a percentage of the payments as their fee for helping you. Most of the moves that the company will make to lower your payments are things that you could do yourself for free. Make sure you know exactly what the firm will do and ensure it is for you before signing on.

4. The National Foundation for Credit Counseling is a non-profit organization that will provide you with debt counseling services and give you advice to help you get debt relief. This is a free service because the creditors pay the NFCC to help them get back the money they are owed.

5. Refinancing is another option that people use to help pay off debt. There are different refinancing options available, so make sure to do your research. You can refinance your house and sometimes even your car to get the money you need. Usually the finance charges on the refinancing will be less than that of your card.

6. Another option is to take out a loan. As long as your credit is decent, you can take out a personal loan and use it to pay off your cards. Assuming that your interest rate of the loan is less than the rate on your card you will end up spending less money in the end. If you own a home, you can take out a home equity loan. If you have a 401(k), sometimes you have the option to borrow against that too.

With so many people suffering from debt today, there are more companies than ever promising to relieve you of your financial woes. Making a bad debt consolidation move could really impact your future. You should know what options are available so you make the move that’s right for you.