Are you over your head in consumer debt? If so, you are in good company.
Millions of Americans spend a sizeable portion of their disposable income each month on paying off credit card bills and other debts.
Making matters worse, for a good many of them this leaves little - if any - money in the bank for the occasional emergency.
When bad things happen, consumers are forced to fall back on the credit cards they are desperately trying to pay off.
The cycle continues, and if you take a good look at your credit card statement, you know that the revolving credit, continuous interest charges, and small amounts that actually go to reducing the principle make this a singularly hard to get rid of debt.
This is where debt consolidation agencies come in.
There are a number of them that advertise in print, online, via email, and also on TV.
Such businesses specialize in consolidating your debt into a manageable balance on which you make one monthly payment.
Rather than making three, five, or more payments each month to various credit cards and outstanding creditors, you only make one payment to the debt consolidation company.
This process eliminates the potential for late, lost, forgotten, or inconvenient payments, and instead allows you to plan for this kind of payment ahead of time.
Many consumers find that this is a valuable tool for learning how to live within their means on a consistent basis.
Of course, there are other reasons why you might look into debt consolidation.
For example, oftentimes the companies involved in the debt consolidation business are also seasoned debt settlement negotiators and work with your creditors to reduce the overall balance due on the various debts.
A reduced balance due translates into a quicker timeframe for paying off these debts.
Moreover, it makes it possible to see the date of living debt free approach a lot faster.
On the flipside, the fact that debts are being negotiated for a lower settlement amount sometimes carries adverse credit report notations with it, but for cash strapped consumers, this is a small price to pay for finally getting out of debt.
Unfortunately, there is some fraud in the debt consolidation industry.
For example, in some cases disreputable agencies require significant funds to be paid ahead of time.
Rather than applying this money toward your debt, such companies will claim it as fees for handling, researching, negotiating, and various sundry expenses that may be more imagined than real.
In addition to the foregoing, there is also a good chance that you may encounter problems with debt consolidation agencies that do not live up to their contractual end of the agreement.
For example, if the agency promises to negotiate with the creditors a payment schedule that sees debts repaid on the first of the month but then fails to make the payment, it is you, the initial debtor, who will see the adverse effects on the credit report.
Shopping around when choosing a debt consolidator for your needs is a key exercise!