I’ve considered debt consolidation, the problem with debt consolidation companies is you have to pay them a lot to help you. If you really want to get your credit cards under control I suggest using Prosper.com. Join my lending group and see for yourself if Prosper is a good choice.

By using services from a debt relief organization you will stop receiving phone calls asking you for money. You will pay a fixed rate amount every month which will never go up. You won’t be dealing with your creditors any more. The “debt relief people” will be paying your bills for you, and your credit card company is out.
You then pay the debt relief company.
lots more here:
good luck!

They will negotiate lower payments with your creditors which may relieve some monthly pain but it will trash your credit score because the lower payments are a violation of the creditors original terms with you.

I write a blog on the subject of credit management, mortgages, real estate trends, etc. Check it out for more information that may be helpful.

i’d suggest a debt consolidation loan from your bank versus one from a debt consolidation company, you’d probably get a better interest rate.

Take your money.

If you must go to one of these agencies, only consider a real non-profit such as the Consumer Credit Couciling (CCC). Ameritrust and others that you see on TV are pretty much for-profit vultures who don’t care about you, they just care about making a lot of money for little in return.

Well, I suggest you get Dave Ramsey’s book The Total Money Makeover.

Signing up with a debt consolidation company will affect your credit report similar to bankruptcy. What you need is a plan to budget and pay down your debt as best you can. DR’s book will help you in that way. Also, look on his web site for radio stations that carry his talk show every day.

Good Luck

Consolodation is just that. They buy out all your pre-existing loans, and then make you pay one payment, for a longer amount of time than the multiple payments you are making now. it’s worth it to not have a bankruptcy on your record. I would go for it.