Things happen in life that leave us scrambling to make ends meet. This is a chronic problem right now, because of the crumbling economy. Either through bad choices in the past, or using credit to get by, some of us end up falling deep into the debt trap. If this sounds like you, bad debt consolidation may be the answer to finally getting out of that hole.

What steps should I take? You must first commit to researching your options. Before making a choice in debt consolidation, be aware that there are many scams in this arena. It is your responsibility to avoid these scams.

Things to watch out for:

Consolidation loans - These loans offer a chance to lower your payments and help you pay off old debt in a shorter period of time. You must watch out for high interest rates on these loans, they may leave you with a higher balance due than you started with.

Balance Transfers - If you have bad credit, you already know how hard it is to get more credit. These companies feed on that! They offer you a special promotional interest rate to coax you into transferring old balances to their card. What you miss, if you don't read the fine print, is that this rate is temporary. After a promo period, you will have another high-interest card in your wallet.

Other options:

Bad debt consolidation and counseling services - Companies set you up with a case manager to negotiate with creditors for you. They can lower your balance and help you to pay off your debt in as little as four years. These companies usually tack a fee on to your monthly payment for their services.

Why not contact creditors yourself? Accounts in collections are prime for negotiating a settlement. These companies want to get paid, without years of court battles. If you make an offer of a lump sum payment or lower monthly payments, they may accept.

Falling into the bad credit trap can be overwhelming, but there are many options available. Wouldn't it be great to alleviate a bit of the stress that falls on you each month from making these payments. Give the above options a try.