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When you have reached the end of your tether and are not in a position to make your monthly payments on your many debts, you need to opt for debt consolidation. Let us look at some of the debt consolidation options you can consider:

' Credit Counselors ' Credit counseling agencies have professionals who can help you in debt consolidation. These experts, look through your financial situation, and talk to your many creditors. It does not matter if you do not understand the terms, such as rates of interest, budgeting, and terms of loan, among others. Your counselors will take care of everything on your behalf. They will negotiate with your creditors and arrange to reduce the monthly installments you need to pay.

You need to be careful while selecting a credit counseling agency, as there are many scams going on. Your financial woes will multiply if you find yourself on the receiving end of a scam. Agencies will charge either a flat fee for the services rendered, or a small monthly fee.

' Debt Consolidation Loan ' The lender consolidates all your debts into a single loan, and you now pay a single monthly installment, instead of the multiple checks to multiple creditors. Debt consolidation loans are either secured or unsecured loans. Though, in general, debt consolidation loans are supposed to be low interest loans, the secured loans have a slightly lower rate of interest than the unsecured loans.

' Negotiating Debt Consolidation ' You can opt for consolidation of your debts through debt consolidation agencies, which will negotiate with your creditors on your behalf. They will work out a new repayment plan with reduction in the rates of interest. At times, they succeed in arranging to cut down on the debt's principal, reducing your overall debt by as much as 40 to 60 percent.

Though your monthly payment amount may reduce, the period of loan will be extended. These agencies charge a small fee for their services.