When you are living paycheck to paycheck and it seems everyone is getting a piece of the pie except for you, debt consolidation may help you free up a little bit of cash each month. Debt consolidation is usually a great option if you are paying several minimum payments per month on high interest credit cards or loans. If you are behind on any payments, debt consolidation may save your credit, or at least clean it up a bit.

Debt consolidation is basically a loan that you would use to pay off all of your debts leaving you with only one payment. The debt consolidation loan payment is usually much less than the amount that all of the other bills added up to before you eliminated them through the debt consolidation.

Obviously with the reduction or elimination of all of that high interest, you will become debt free much quicker with debt consolidation than you would otherwise. Unless, of course, you look at that extra cash as a means to pay for further debt that you may acquire. With debt consolidation, you have to keep your eye on the goal of being debt free, not just having more money to spend. If you keep adding more debt then debt consolidation is really pointless.

Whether or not debt consolidation is the best option for you is something you might want to talk to a credit counselor about. There are many reputable companies with certified credit counselors who can explain the ins and outs of debt consolidation to you and help you determine if it would be the best option for you. Debt consolidation is growing in popularity and seeing many consumers through to a debt free future, but it might not be for you, so just be sure to explore all of your options before choosing debt consolidation.

Timothy Gorman is a successful webmaster and publisher of Debt-Relief-Solutions.com. He provides more credit counseling, bankruptcy and free debt consolidation information that you can research in your pajamas on his website.