Today more than ever people on TV, Radio, and the internet are advertising debt consolidation, but what is it really?  Does it really work?  How can I avoid being scammed out of house and home?  Will it affect my credit? All these are very important questions that need to be addressed when seeking debt consolidation assistance.
  Consolidation does not get rid of existing debt.
  Most often it is credit cards, retail credit, student debts and car loans that end up being consolidated.
  People use it to roll their smaller payments into one large payment and they often extend the life off the loan to lower monthly payments.
  The most practical type of debt consolidation program rolls existing debts into a home mortgage or HE-LOC loan on your house.
  In a sense, you are just borrowing money from one lender to pay off another.
   The main purpose of debt consolidation is to lower your monthly payments.
  It is important to note that even at a lower interest rate, you may still be paying more interest over the life of the loan if the loan is for a significantly longer period of time.
Beware of people who tell you that you can settle your debts for a fraction of what you owe.
  If you are not already behind on payments this will often only work by ruining your credit .
  If you are behind, you can probably settle a lot of this debt yourself with out paying a 3rd party commission.
  If you own assets or have an income there is nothing to stop the credit card companies for suing you after the settlement for the amount you originally owed.
   Another thing to avoid is brokers trying to consolidate your debt into an adjustable rate mortgages with a balloon payment due in 1, 3, or 5 years.
  Brokers can make a hefty kickback on these loans because the true payment amounts can be masked behind the arm.
  Getting debt consolidation assistance is a serious step.
At best it is only a temporary fix to a bigger problem.
  You should find out as much as you can about debt consolidation companies before proceeding.