Repay Loans Faster. Low Interest Rates - that is the hype.

The fact is that basically the debt consolidation company gets benefited from this one. They buy - yes buy - a lower rate of interest from the company you owe money to by negotiating payment of thousands of dollars of debt. You are charged an amount for this facility and a monthly fee after that.

The debt consolidation provider pays off your loan quicker, you don't. You keep paying them instead.

If you thought making regular paybacks by your due date was expensive, try making ONE LOW Payment per month.

These companies only buy bad debt to reduce the interest. They will buy groups of debt - thousands of dollars of debt from a firm to get the lower interest rate - and in addition they get a percentage kickback from your loan company to reward themselves for payment of that loan.

Debt consolidation scam fees are included in your monthly payment - So in the real world you pay as much as you could have if you had sent that extra payment to your financing company and paid off your higher interest rate credit card quicker by adding that extra fee to your payment every month. Actually, you pay a bit more.

They don't re-negotiate your due date. That means that they pay everyone's installment at the same time, once a month.

If they pay out on the 15th of the month and your payment was due on the first, then your credit will carry a 30-day late payment once per month - every month-on all three of your credit information. Late payments stay on your credit history for 7 years (or more). Feeling good now, I'll bet!

That's not over. You could also be one of those individuals whose payments get omitted once in a while - Yes it occurs all the time with Debt Consolidation practices.

Negotiation is something you can do yourself. If you just hate speaking to these people you can even approve someone you know and trust to negotiate a lower interest rate for you on your behalf. If you can't get anywhere negotiating with the initial person you talk to, ask to talk to a manager. If you can't get anywhere by the third supervisor, you're trapped.

- Negotiate your own reduced Interest rate

- Stretch out your repayment schedule

- Pay off the largest interest debts First and add further money

- Write 2 checks: One for the least payment and One for any additional money with a note in the memo that states: "Principal Only Payment." This one simple measure can save you tons of money. If you don't state this, your money is automatically taken to the interest and you'll pay more interest for an extended period. Yeah, that really sucks, but not for them. For you.

- Figure out - there are freely available debt calculators all over the net - what it would take to pay your highest interest cards first. I plugged in my own and came up with the fact that if I add $60 a month to my minimum credit card repayment, I can have a $1300 debt cleared in 12 months with $66 interest.

- If I carry on with the minimum payment, It can take more than 6 years and cost me over $2500. Just that one action that I took put over $1134 back in my account - in one year. And I did it personally. Without debt consolidation fees!

I don't recommend any debt consolidation company. They prey on your despair and the doom and gloom of the length of paying out your credit cards at minimum payments.

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