Regarding debt consolidation loans, the debt lender will pay off a few to all of your debts, then consolidate and create one new loan for you, that will come with a lower single monthly payment than the combined payments of the initial debts. But be aware of these debt relief consolidation companies, because if you don’t bother checking the loan parameters carefully, you may not be able to get the exact type of assistance you are looking for. In some of the cases, the lender wants you to focus strictly on the single lower monthly payment, and not on the total payback amount. This is because even though they may be offering you a combined lower payment, but it may be at a higher interest rate. They achieve this lower payment by lengthening the payback term over a much longer period of time. So you may find that you will be paying far more in interest payments than you would have, had you originally stuck with the original loans.
The third and final debt consolidation relief available are credit counseling agencies. They offer help by working directly with your various creditors you owe money to, to make alternative payback arrangements for your existing debts. They on your behalf, will negotiate with all the lenders to reduce your monthly payments, as well as your interest rate, and at times even the total amount of debt you owe. Then what you are required to do is make one single consolidated payment per month to the credit counseling agency, who will then pay out the individual monthly payments to your creditors. If you choose a credit counseling agency, most of these companies will have a fee for their services.
The best way to of course fix your debt burden is to not create debt in the first place. But obviously easier said than done. Don’t become overwhelmed with your debt situation that it will interfere with your physical or emotional well being. Before it reaches this point, make sure your seek out debt relief consolidation through one of the three debt relief sources.