Debt consolidation is taking all your debt and shrinking it into one small debt, which in return should hopefully reduce the over all interest you are paying on several debts.
So if you have maxed out credit-cards that keep building interest, what you would do is contact a debt-consolidating company and have them negotiate your fee's for you.
The debt-consolidator then acts out on your behalf. They will usually either finance your debt themselves by paying off your creditors, or they might have you put all of your debt under one of your existing creditor accounts to pay off the others.
But before you do anything (with debt-consolidation) ... shred your credit-cards!!! Obviously they are the problem. There's no point in consolidating your debt if your just going to keep the process going.
So if you have maxed out credit-cards that keep building interest, what you would do is contact a debt-consolidating company and have them negotiate your fee's for you.
The debt-consolidator then acts out on your behalf. They will usually either finance your debt themselves by paying off your creditors, or they might have you put all of your debt under one of your existing creditor accounts to pay off the others.
But before you do anything (with debt-consolidation) ... shred your credit-cards!!! Obviously they are the problem. There's no point in consolidating your debt if your just going to keep the process going.
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