Debt consolidation is something that you will need to do with a company that will be acting like a third party in your debt situation with your lenders. The debt consolidation company will do all the contacting of your lenders and credit card companies to get all your debts piled into one debt.
The debt consolidation company will charge you a fee for this service but in the long run you may better off to deal with your debt this way since they will usually be able to negotiate a better deal for you causing you to pay less on your overall debt. The company will usually be able to work with your creditors to lower your overall payout therefore saving you money.
On the other hand, credit counseling is something a company that specializes in that field can help you with but all they are doing is counseling you on the situation. The credit counseling is not part of making telephone calls to your creditors and lenders and bargaining with them for a lower payout amount like the debt consolidation is. Credit counseling is a good idea if you need some help with getting a plan together for yourself or your family. When you visit them you will need to take all your bills so they are able to analyze everything and give you some advise on what you should be doing in the future with you credit situation.
The best thing to do before you decide, is to sit down with all of your bills and see where you stand with them with their monthly payouts and payoff amounts and then decide which is the best option for you to choose.
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