When most people think of debt consolidation, they think of people who have gotten in over their heads, who were careless with their spending, irresponsible with their finances, people who are constantly trying to keep the wolf back from the door.

But the truth is that in the recent economy, a lot of good, hard working people have found themselves making late payments or not making them at all on credit cards, homes, automobiles and more. Many of these people had well-paying jobs and were downsized or laid off. So, when they made their credit purchases, they had every intention AND the means of making their payments.

In these types of situations, debt consolidation is worth considering; most creditors see it as a positive sign when they know you’re trying to fix the problem by working with a debt consolidator. In fact, creditors typically have strong relationships with debt consolidators and will work with them to get you a lower interest rate and combine all your payments into one.

A qualified debt consolidation firm can review your debt consolidation options with you. It may be securing a consolidation loan or taking a home equity loan or any number of additional options that may save you money and stress in the long term.

The key to sound debt consolidation is finding a reputable debt consolidator who is willing to be honest with you and tell you what is and isn’t possible. For example, you don’t want someone who will tell you that you can pay off $250,000 in debt in six months if that isn’t anywhere near feasible. You want the person who can be wholly honest with you.
 
You also want to check the debt consolidator’s Better Business Bureau and your state’s attorney general records before signing any contracts. These organizations exist for consumer protection, so do your best to protect yourself. Debt consolidation can be a good thing if you do it right.