For debt consolidation, visit a debt management professional

For debt consolidation, visit a debt management professional. These professionals will help you lower the rate of interest on your debt and try to get late fees and penalties dropped. These two factors are big reasons why people need to consolidate debt. High interest and late fees on multiple accounts can really add up quickly.

If you think a debt consolidation loan will be difficult for you to pay off, even though it lowers your monthly burden, consider bankruptcy instead. Debt consolidation is meant to restructure your payment and reduce interest, but defaulting will put you in even more hot water. Weigh your options, and if the situation is bleak with debt consolidation, talk to a credit counselor before signing anything.

Consolidating your debt leaves you with a single, affordable payment every month. You might choose to do this in 5 years, or choose a longer or shorter term. You'll have a goal by doing this and you can come up with a reasonable time frame to pay it off.