If you’re struggling to meet your debt obligations, it may seem like a relief to know that there are solutions available to make your situation more manageable. However, it’s important to understand the downsides of these options, including the risk of debt relief scams, before pursuing them.

In some cases, a debt relief program could end up costing you more in fees and taxes than it saves you. In other instances, it could lead to a worse credit score or even bankruptcy.

To reduce your debt, a debt settlement company will negotiate with creditors on your behalf to lower your outstanding balances. This is typically only possible with unsecured debt, such as credit card bills, personal loans or private student loans. This is because secured debts, such as mortgages and auto loans, cannot be settled. Debt relief companies are often able to secure reduced debt balances by instructing you to stop paying your creditors and instead deposit your monthly payments into an escrow account they set up for you (and for which you will likely be charged monthly fees). Once enough funds have been accumulated, the debt relief company will offer your creditors a lump-sum payment in exchange for settling your debt.

The debt relief industry is rife with scams, so it’s crucial to do your research before hiring a firm to settle your debt. Some red flags to look for include a company that asks for an upfront fee, guarantees it will settle your debt for less than what you owe or promises it will stop debt collection calls and lawsuits. It’s also a good idea to consult with a tax professional before taking this route.

CNBC Select takes a closer look at how debt relief programs work, what they can and can’t do for you and how they impact your credit score. The article also provides a list of the top debt relief providers and their costs and reviews.

Hanna Horvath, CFP® and Red Ventures Senior Editor, writes that while debt relief programs can help many people get out of debt faster than they would have without these programs, they should be used only as a last resort. They require consistent, on-time monthly payments for years – and many people don’t complete these programs.

Some people who participate in debt relief programs don’t end up with all their debts settled, either because they drop out of the program or because their creditor refuses to agree to a lower debt balance. In addition, some debt relief companies charge high fees, which can add up to more than the debts they settle for their clients. This makes the program expensive for those who do stick with it. And it’s not a good option for those who are behind on their mortgage or car payments, as these programs can threaten foreclosure and repossession of these assets. The Federal Trade Commission has taken action against Prosperity Benefit Services, a debt relief company that the agency says bilked more than $20.3 million from students seeking loan forgiveness that never existed.