Over the years you may have accumulated a number of debts from a number of different creditors, which could be as many as ten.
You, and most Americans, have a lot to consider, such as home mortgage payments every month, car loans to clear off, personal loans for that furniture, the music system, and the plasma TV your wife wanted to have so much.
Not to forget the eight odd credit cards you carry, all with their maximum limits reached, and you neck deep in debt.
All these debts to pay off, and you without much hope of a good life for the next decade...
and then you decide to escape through debt consolidation.
Now what does debt consolidation do for you? All your debts to the ten odd creditors get merged into a single large debt, and you make a single check payment every month on your debt consolidation loan, instead of ten to ten different creditors.
Of course, as you have secured this loan against your property, or your home, you can negotiate a low rate of interest.
This will lower your monthly outgo to service your loan.
You need to ensure that you meet your payments regularly to avoid late payment charges and penalties.
So, debt consolidation looks like a great idea, right? Wrong! On the face of it, it IS a great idea.
You just cannot afford to spend money like there is no tomorrow, like before.
You have already used up the advantage of your home as collateral: what next? Go for debt consolidation, and tear up all those credit cards.
Make sure you do not purchase anything on credit until all your debts have been cleared, and even afterwards.
To get out of your debt through debt consolidation, you need to change your very lifestyle and your mind set.
If you can do this, then debt consolidation is a good idea, otherwise...