For years financial advisors have been warning debtors to steer clear of debt consolidation companies, but take advantage of debt management programs. Both tote that they'll save you a huge chunk of change when relieving your debt, but understanding the differences could save you much more. Here is a comparison of the two, as presented by financial expert Suze Orman, www.suzeorman.com.

Debt Consolidation Companies

Immediately you'll noticed that debt consolidation companies are... well... companies, and companies exist to make money. People are often tempted to turn to them because creditors are often willing to work with them. Sure, they'll negotiate a discount on your behalf, but they'll also take a cut of it. They usually tell you to stop paying your credit cards and ruin your FICO score. They often ask for $700-$800 up front, and can charge up to $100-$200/month in fees.

Debt Management Programs

Organizations like the Consumer Credit Counseling Service (CCCS) are non-profit corporations created to help people manage their debt. They look at your financial situation, provide classes to educate you on debt management, and put you on a program where you pay them and they pay your creditors in the best way possible. The fee is typically just $5-$15/month, and it does not hurt your FICO score. If you're considering seeking outside counseling to help you sort out your money, this type of program is ideal.

For more information on debt management and consolidation, visit SuzeOrman.com.