Unfortunately, it is not difficult to get into a situation where you have more debt than you can handle. People end up in this same situation every day in New Jersey. How you handle it can make the difference between reviving your credit and ruining it, though. One option is called debt consolidation, which Experian explains is when you use a loan to put all your debt into one account with one monthly payment.
There are good and bad things about consolidation. You will likely pay more in the long run due to interest charges, but your monthly payments may be lower and more affordable. If you are falling behind in monthly payments, then this could really help you to avoid bad marks on your credit report.
When you get a consolidation loan, you use it to pay off the balances on all your credit accounts. Then you just have to pay the monthly charge on the consolidation loan. Do keep in mind, though, that if you can get a loan with a payment amount that is much lower than you were paying on all your debts, the chances are good it will have a long term for pay off, which increase the interest you pay.
Another debt consolidation option is using a company to settle your debts. The company works with you and your creditors to settle your debts for lower amounts than what you owe. You will still have to make monthly payments as well. You will pay the debt company who then will distribute the money to your creditors according to the consolidation plan. You should be aware with this option that any accounts you are consolidating will be closed. This can have a negative impact on your credit score. This information is for education and is not legal advice.