If you have been contemplating a debt consolidation for some time, there are a few major things you need to take into consideration. You need to ask yourself a few simple questions before you get started. What sorts of debt consolidation companies are right for you? What kind of costs are involved in a debt settlement? What are my options instead of dealing with a company? These are simple questions we will try to answer in this article.

What many people simply don't understand is, that a debt consolidation may be one of the best options you have to get yourself out of debt. The alternatives are not very pleasant. You can declare bankrupcy and completely destroy your credit score. This will get rid of your debt fast, but you will have a very hard time rebuilding your credit score, which is used when determining how much of a financial risk you are when a bank issues you a loan.

You can also go through consumer credit counseling, which is a good option, but you will only be able to do this if your debt is below $5,000. Another option is to simply pay off your bills, which can take a considerable amount of time. Take a typical credit card balance of $10,000. If you pay only the minimum payment, it can take you up to 5 years to pay it off, and end up paying close to $15,000 in finance charges, interest payments, and even late fees should you ever make a late payment. Carrying a high balance can also directly affect your credit score, which lowers as your total debt makes up a large percentage of your credit.

Dealing with a debt consolidation company can be a very difficult choice to make, but it just may the right one for you. We have done the research to find the best debt consolidation companies [http://www.bestdebtconsolidationreviews.com/] on the market, and have narrowed down a list of the top 3 in the country. Take a look at our reviews and see whether or not they can help you.