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Save yourself with debt consolidation By Justin Hunter

Do you have existing debt? Multiple debts? If so, you are not alone. Credit cards, student loans, medical and utility bills can all add up to significant debt in a hurry, especially if you just graduated college or are recovering from an injury or illness and have not been working full time.
Luckily, there are numerous corporations designed to help those with this increasingly frequent dilemma. The informative article, “Debt Consolidation 101” written by Mansi Gupta and posted on starloansnow.com, explains how debt consolidation can resurrect a person’s credit while providing them financial hope when times seem to be at their worst.
Basically, debt consolidation occurs when a borrower takes out one loan that essentially pays off two or more existing debts.
“Consolidating existing unstructured debt into one personal loan may save on your monthly outgoings while, at the same time, offering a repayment discipline and clear end-date to your debt.”
A debt consolidation service may be run either privately or through a nonprofit organization. Both types of service have to adhere to the same guidelines so it is beneficial to just listen to the offered terms and rates before making any decisions. You will want to take the best plan that allows for all your debts to be consolidated into one lump monthly payment with the lowest interest rate possible.
“A debt consolidation service, or sometimes referred to as a ‘debt management plan,’ has preset arrangements with almost all of the major creditors where the interest rate is roughly predetermined.”
A debt consolidation company will provide you a quoted rate that is obtained from a special rate chart they receive from a specific creditor. This quoted rate will most likely be lower than the one offered by credit card companies to the public and will simplify your monthly payment so that you do not ever have to deal with the various creditors you owe.
“One caveat of the debt consolidation plan is that one must cancel any and all cards one includes in the program. An individual may wish to exclude a card for emergencies, depending upon the company's policies.”
But the major benefit of debt consolidation is that you will rid yourself of harassing creditors striking fear every time the telephone rings. Instead of feeling bad about all the past-due bills, you will feel proud that your credit is being rebuilt.
However, make sure you know what you are agreeing to before you sign. Consolidating debt may actually cost you more in the long run if your monthly payments are structured to be paid in full over a longer time period, resulting in more payments being made to interest.
“Commissions to expect when shopping a debt consolidation company are roughly your first payment you'd make toward the program plus a monthly administration fee. The monthly administration fee ranges all over the board, depending upon the company you are getting a quote from. Some charge a flat fee while others charge a per creditor fee.”
With all that being said, a debt consolidation program significantly benefits those who have very high interest rates (above 18%), have more credit card bills then they can keep up with or those unsightly student loans. Since student loans are subject to be repaid six months after graduation, consolidating for a long term up to 30 years can greatly reduce a borrower’s stress.  
You may have to spend a little more over the life of the consolidation to save money, your credit rating and yourself from bankruptcy, now.

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