Credit counseling, bill consolidation, credit consolidation, are familiar terms that can also be used to describe debt consolidation. What is debt consolidation? Debt consolidation is a way to replace debt from many loans and bills which also have high-interest on them with a simple but large enough, low-interest loan. These loans and debts can include IRS debt, collection accounts, utility bills, credit cards, unsecured loans and medical bills as well.
For people who are in debt and face bankruptcy most financial planners would advice that they bring all their debt together under one umbrella. Most people have the erroneous notion that debt consolidation is a loan which they would rather not take to avoid getting into more debt. But this is not the case. Debt consolidation is actually a process of paying off all your debt by borrowing money from one lender to cover and pay off all accumulated debt that you have.
Debt consolidation is the choice from most experts for getting out of debt. It is a way to pay down all debt without the fear of defaulting. To do this will require some calculation to figure out how much of your debt can be paid off and how long it will take to pay off.
Debt consolidation is implemented through debt management planning, and involves a debt management program which is used to successfully eliminate credit card and other common forms of debt. Using the advice and counseling given by debt management service companies is usually enough and all that is needed to solve debt problems.
People with less than sterling credit can also benefit from debt consolidation by getting a bad credit debt consolidation loan. Keep in mind there is a side benefit of doing this which is that a debt consolidation loan can also help you get your credit back on track very quickly.
For people who face the nagging problem of out of control debt, debt consolidation is simply the best and most effective method to not only eliminate debt but to eliminate it in the shortest possible time.
James Hegarty is a writer for http://www.fastdebtfinancing.com - The Debt Solutions Site- providing debt consolidation advice . The site offers free tips and information on ways to get out of debt and stay debt free. You can visit the site now by clicking here .