In debt over your head and don’t know what to do? You are not alone. Many people are finding themselves in the same situation these days. While this fact may not comfort you, it might help to know that these people chose one of two solutions to get out of debt: consumer credit counseling and debt consolidation. In this article, we will discuss debt consolidation services and debt consolidation loans.
Get Out of Debt with Debt Consolidation
Debt Consolidation Services
This option may be your best bet if you have monthly bills that are larger than you can pay or are having trouble paying your bills on time. It is also good for people who have trouble keeping up with multiple bills and are using cash advances to pay bills.
With this method of getting out of debt, you meet with qualified professionals who look at your income and what you owe. They develop a plan to consolidate bills into one convenient payment for you.
Pros:
Monthly payments are decreased immediately
Money management skills are taught
Stops or eliminates some interest and fees
Debt collections services are reduced
Cons:
Credit is not available under consolidation
You must meet unsecured debt minimums
Works only with unsecured debt
Not all unsecured debts qualify for consolidation
Could have a negative effect on your credit rating
Debt Consolidation Loans
Loans to pay off debt can be very effective in reducing your debt. With this method, you must be drp careful to use the loan to consolidate your bills so you have fewer payments at a lower interest rate. This method is not for those people who will be tempted to use the loan to make more purchases and get further into debt.

Pros:
Multiple debt payments are immediately eliminated
Debt collection attempts are eliminated
Credit rating isn’t affected negatively
Credit rating may improve
Cons:
You must be able to qualify for a loan or a mortgage to get the money to consolidate debts
Encourages more debt
Restructures debt for lower payments but doesn’t eliminate it
Losing house is a possibility if you can’t make the payment
Before you make a decision, weigh the pros and cons of each of these methods carefully. Choose the one that makes the most sense for your situation. Make the right choice and you can get out of debt with debt consolidation.