The average American has about $8,000 in credit card debt--and most of us would like to reduce it! You may know that there are programs online that can help you drop your balances and get debt free, but are they really effective? Some work better than others. Here's a guide to help you make the best choice:

Debt Reduction Plans:

You can find these debt reduction plans through many personal finance websites or money management websites. They're designed to help you control your debt by giving you step-by-step instructions for organizing your accounts, creating a payment plan and implementing debt reduction strategies. Overall, these are the best bet for folks who just need a little help getting organized. If you only have a few credit cards and you're currently able to make at least the minimum payments, these debt reduction plans can help you get your finances under control.

Debt Counseling Services:

These companies don't actually manage your debt. Instead, they offer classes, booklets, online seminars and other information that gives you the knowledge you need to take control of your money. You'll be educated about things like interest rates, minimum payments, and different types of debt. If you're a take-charge person who wants to learn how to be a better money manager, these types of services can give you all the information you need to get started.

Debt or Bill Consolidation Companies:

These companies consolidate your debt into one monthly payment. They sometimes help lower your interest rates or minimum payments, too, making your debt more manageable. They're best for anyone who is struggling with bills, either because you have trouble making the minimum payments each month, or you just can't get organized enough to keep track of all your bills. If some of your accounts are about to go into collections or default, these companies can help you avoid any more damage to your credit history.

All of these debt reduction programs can be successful, depending on your personal situation and your abilities as a financial manager. Choose the one that best suits your needs, and you'll regain control of your money and dramatically decrease your debt.