If you are drowning in debt, the idea of an agency that exists to help you might sound to good to be true.
That fact of the matter is, it isn't.
These agencies do exist and they really do work to help you reduce or eliminate your debt.
As with anything else in life, there are companies out that that try to take advantage of your tough situation.
Make sure to check into any company you are thinking about working with.
Read user reviews, talk to people in person who have used these companies before and most importantly, check the better business bureau for any negative strikes against a debt consolidation company.
Debt consolidation is exactly what the name implies.
All of your debts are consolidated into one easy to manage payment.
This can be accomplished via a loan, another credit card, or in the case of a debt consolidation agency, one payment to that company.
This company then uses that money to build up an account for your.
Your various debts are paid out of that account each month, and over time your debt is eliminated.
So how do they reduce the amount you pay? It's simple really.
They negotiate better interest rates or even simply convince the creditor to lower the amount you owe.
This assures that you will actually be paying less in the long run and can even eliminate a substantial amount of debt in as little as three to five years.
If you find yourself in over your head in debt, do your research and find a company or solution that works for you.
You won't be disappointed and will find yourself debt free before you know it.