Ideally, you would also pay less interest and therefore pay off the debt faster. You make your payments to the counselor, who distributes your payment among the card issuers. You can find legitimate, nonprofit agencies through the National Foundation for Credit Counseling. Sometimes lenders will agree to a settlement if they believe the debt would be otherwise uncollectible or that you might file for bankruptcy.

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In fact, you end up paying more and staying in debt longer because of so-called consolidation. Get the facts before you consolidate or work with a settlement company. Here are the top things you need to know before you consolidate your debt. Debt consolidation is a refinanced loan with extended repayment terms. Debt consolidation is different from debt settlement.