Debt Consolidation
 

Has anyone had their debts consolidated into one "bill"? Does anyone have any personal or know of any personal (positive or negative) experiences with this?

Who should consider consolidating?

Debt consolidation only works if one consolidates their bills and doesn't get any new ones. Unfortunately what some people do is take out a home equity loan to pay off their credit cards, and then run up the credit cards again.

There are some advantages to taking all one's bills and instead of mailing out 5 checks, mailing out one, if the sole focus is to GET OUT OF DEBT, this process makes it easier.

I am in the process of doing debt consolidation. I did it once before and it was very helpful in that I got to manage my money better and just pay one bill. I have a friend who consolidated and it has worked well for her also. In addition to making her one monthly payment after a few months she began sending additional payment directly to her creditors. Eventhough, the debt consolidation company discouraged it, she did it anyway and was able to cut down the amount of time she was doing her debt consolidation. Ultimately she was able to pay off her obligations faster. She currently has good credit and is in the process of looking for her second house...all with a salary that is under $30,000.