Avoid debt consolidation loan :-
There are debt consolidation loans, balance transfers to a zero-percent credit card and home equity loans or lines of credit to consolidate your rising debts.
70% of Americans who take out a home equity loan or other type of loan to pay off credit card debts end up with the same debt burden within 2 years.
A major problem with debt consolidation loan is you add another loan (loans) and that increase your Financial Problem and you may be won't qualify for the very low interest rates loan.
However, if this time you'll be more disciplined, debt consolidation loan may be something to consider despite its risks.
Manage debts without Loan :-
Debt management is most favorable trend among professional debt consolidators cause it costs less and is quicker than a debt-consolidation loan.
(e.g.) If owing $20,000 would end up paying $6,000 to $8,000 in interest and fees and be debt free in 4 to 6 years by using a credit counselor. If that person took out a 15 year home equity loan (debt consolidation loan) @10% (higher rate due to bad credit), he will end up paying $18,686 + $20,000 (main borrowed amount).
you should explore credit counseling if you just can't get a handle on your bills by yourself. Getting professional debt consolidators help in managing your debt can help you change your credit behavior.
Credit may be denied to people that have taken on too much debt; they'd rather not know how much debt they owe. A professional debt managers will make you face up to your obligations.
While working for consolidating your debt and working with your creditors to reduce your payments, professional credit counselors require you to stop using your credit cards further. Credit counseling agencies also force you to stop taking more debts.
So in last it is clear with you that Professional Debt Consolidators i.e. professional credit counselor will more suitable to you than applying for debt consolidation loan