Debt consolidation is combining multiple debts into a single payment, with lower interest rates. You can consolidate your debt by using a personal loan or line of credit, or utilizing a debt management or counseling company , whom will negotiate with your creditors on your behalf to lower your interest rates which will lower your monthly payments, or negotiate a settlement amount both you and your creditor will be satisfied with. Using a debt consolidation program depends on the individual and their specific financial situation. What is your take on debt consolidation companies? Have you used one, and if so, did it benefit you in the end? If you have not used a debt consolidation company and created your own debt management portfolio, what are some strategies, techniques, or advice that you can share with others on how you've successfully managed your debt?
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It can be a scary thing at first, but ALWAYS work with your ORIGINAL creditor when you get to the point that the bills are getting too high and the due dates are coming too fast! Never work with a collection agency, they are a third-party company that collects a debt for the creditor while also charging you a hefty fee for the collection service. I am familiar with some debt management companies, but have not actually worked with one personally. The best practice for me when I was working on re-establishing my credit was to call each of my creditors and work out a repayment plan with the best lower interest rate they could give me so that I could start paying down my debts before any delinquent payments hit my credit report. Shockingly, the customer service reps are really nice and will work with you since their goal is to collect the money and get the accounts back in good standing. They rather collect what they can then to have to charge the account off, which causes them to lose money in the end.