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In ads that blaze across TV screens, radio airwaves and computer screens, they promise results like "getting out of debt easy . . . while saving you thousands!"

But for many consumers, that's not exactly how it turns out.

Each year, thousands of consumers nationwide sign up with so-called "debt settlement," "debt relief" or "debt negotiation" companies. By whatever name, they can be risky.

But in an economy hobbled by layoffs, foreclosures and a credit crunch, they're attracting more interest from overloaded consumers.

Stephen Cox, spokesman for the national Better Business Bureau, said there's been a recent "spike" in inquiries from U.S. consumers asking about debt negotiation companies.

Based on nearly 100,000 inquiries last year alone, he said, "our complaints will be up in 2008."

Gayle Weller, consumer protection analyst with the California Attorney General's Office, said her office has seen a similar surge in calls. Some debt companies, she said, "play on people's ignorance and their desperation."

Plenty of consumer groups warn consumers to be wary.

Folks in financial hot water can find themselves in "water that's even hotter," said Barry Goggin, president of the Better Business Bureau of Northeast California. "Sometimes they're grasping at life preservers without knowing who's holding the other end."

There are plenty of reputable companies out there to provide debt counseling and money management. To find the right one requires some homework.

If you're trying to get your debts reduced, try the do-it-yourself approach first, say Weller and other consumer advocates. Call your creditors directly and ask about better repayment terms and lower interest rates.

If that's not successful, look for a company that provides credit counseling. To find one, you can consult the Association of Independent Consumer Credit Counseling Agencies, at www.aiccca.org or 1-866-703-8787

"If you need help managing your money, there are reputable credit counseling organizations that can advise you, help you develop a budget, and offer free educational materials and workshops. They can sit down with you and discuss your entire financial situation . . . to solve your money problems," said Federal Trade Commission spokesman Frank Dorman.

Also be careful about jumping too quickly into a "debt management plan," or DMP, where you pay a monthly fee to a company that pays down your debts, based on lowered rates it negotiates with your creditors.

Even if your credit-card debts get paid off at reduced rates, those charge-offs can cause long-term damage to your credit rating. As the BBB's Goggin put it: "Your bad debts will drop your credit score like a ton of bricks."