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Debt Consolidation - Debt Consolidation Is NOT A Loan Sometimes we all need a little bit of help with debt. That's where debt consolidation or credit counseling comes in. The words "debt consolidation" should mean only one thing to you: a consolidation of all that you owe, into one debt, and one payment. Unfortunately, they are often paired with the word "loan", so that banks and mortgage institutions offer you a "debt consolidation loan" as your escape from the debt pressure you're experiencing. Some of these loans end up as high interest second mortgages on your home, or exorbitant refinancing of it and thus is not really a debt reduction. While individuals who want to consolidate debt *may* approach their creditors to try and arrange lower payments, suspension of interest, and other ways in which to help relieve their debt load without declaring bankruptcy, a consumer is best served by using a good debt consolidation service, or request debt counseling. These are trained professionals with years of experience in debt consolidation and in reducing your debts into one low monthly payment, which in the end will benefit both you and the creditors. Companies or businesses that are owed money, would naturally like to see it paid. They are generally more receptive to the approach of a professional debt consolidation counselor with a well thought out debt consolidation plan, than the individual debtor who may not have considered all the angles. Whether you choose debt consolidation on your own, or though a debt consolidation, be sure to carefully read the terms of the debt consolidation agreement which is drawn up between you and your unsecured creditors. Remember, this is NOT a loan. It is simply a consolidation of all debts into one monthly payment, which is more manageable with your budget and provides you with debt help. Debt consolidation simplifies your financial life by reducing your debts to one payment, sometimes as much as 50% less than what you are paying out now. Even if you want credit card debt relief. Interest costs are greatly reduced, and by making one regular monthly payment, you'll no longer be plagued by late fees. Past dues accounts can be brought up to current status, helping to re-establish a good credit record. This is imperative for proper debt management. 
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