Debt consolidation may be an option for some people.

The problem I have is the amount of education and discipline of those who are getting the consolidation..

One of the main things that happened to create the credit crisis was that people kept consolidating their loans into their mortgages until they couldn't afford the payments any longer.

IE... they kept racking up their credit cards, and then consolidating them into their mortgage based on rising real estate costs. Once the credit cards were paid off, they would start running them up again with new purchases.

If you can manage your credit properly and with discipline and debt consolidation saves you money, then it's a good idea.

Debtcons,

I don't like the debt consolidation method. This method favors the debt consolidation company more then their client. The best method out there, if you’re not planning to file for bankruptcy is debt settlement. I like the fact a debt can be settled in a one time lump sum payment within 30 days.

Cheers

4 Disadvantages Of Debt Consolidation Loans - Be informed...

1. Even while you pay low monthly installments and interest rates, you are paying back the loan over a longer period which means that you will be paying more.

2. At times you have to pledge your secured assets like your car or home in order to obtain a debt consolidation loan. You must highly avoid this strategy of using your assets as collateral against the loan.

3. The lower interest rates are because the lender is taking less of a risk lending you the money, i.e. they have a good chance of getting paid back when you’re willing to bet your home that you will.

4. Some nonprofit agencies who give you debt consolidation loans may convince you to let them manage your money. If you are suffering from huge debt burdens it is ideal to go for debt consolidation loans and save yourself from the hands of harassing creditors. Enroll with a debt consolidation program and be debt free within a reasonable period of time.

Debt consolidation service is the consolidation of all your loans into a single new loan. These loans are lower in interest and are specially designed to aid people facing too much debt and to reduce the debt. Sometimes it is called a debt loan. you may get some nice articles and experiences regarding this from
http://debtcons.freehostia.com