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Repay Debt Faster. Low Interest Rates - that is the publicity.

The fact is that basically the debt consolidation company benefits from this one. They buy - yes buy - a lower rate of interest from the company you owe money to by negotiating pay back of thousands of dollars of debt. You are charged an amount for this facility and a monthly fee thereafter.

The debt consolidation provider pays off your loan faster, you don't. You keep paying them in its place.

If you thought making regular paybacks by your due date was expensive, try making ONE LOW Payment monthly.

These companies only buy bad debt to minimize the interest. They will buy collections of debt - thousands of dollars of debt from a firm to get the lower interest rate - and in addition they get a percentage kickback from your credit company to reward themselves for payment of that loan.

Debt consolidation scam fees are built into your monthly payment - So literally you pay as much as you could have if you had sent that extra payment to your credit company and paid off your higher interest rate credit card sooner by adding that increased fee to your payment every month. Actually, you pay a bit more.

They don't re-negotiate your payment date. That means that they pay everyone's installment at the same time, once a month.

If they pay on the 15th of the month and your payment was payable on the first, then your credit will carry a 30-day late payment once a month - every month-on all three of your credit records. Late payments stick on your credit history for 7 years (or more). Feeling good now, I'll bet!

That's not over. You could also be one of those people whose payments get omitted once in a while - Yes it happens all the time with Debt Consolidation procedures.

Negotiation is something you can do yourself. If you just hate talking to these people you can even empower someone you know and trust to make a deal for a lower interest rate for you on your behalf. If you can't get anywhere negotiating with the initial person you talk to, ask to talk to a supervisor. If you can't get anywhere by the third supervisor, you're trapped.

- Negotiate your own lower Interest rate

- Stretch your repayment schedule

- Pay off the largest interest debts First and add extra money

- Write 2 checks: One for the lowest payment and One for any additional money with a word in the memo that states: "Principal Only Payment." This one simple measure can save you tons of money. If you don't do this, your money is automatically taken to the interest and you'll pay more interest for a longer period. Yeah, that really sucks, certainly not for them. For you.

- Figure out - there are freely available debt calculators all over the internet - what it would take to repay your highest interest cards first. I connected my own and came up with the fact that if I add $60 a month to my minimum credit card repayment, I can have a $1300 debt paid off in 12 months with $66 interest.

- If I carry on with the minimum payment, It can take longer than 6 years and cost me over $2500. Actually that one action that I took put over $1134 back in my pocket - in one year. And I did it on my own. Without debt consolidation costs!

I don't recommend any debt consolidation company. They prey on your despair and the doom and gloom of the length of repaying your credit cards at minimum payments.

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