Instead, you will owe that company an amount that equals all of your previous obligations, which you can pay in one simple monthly payment.
The lower the APR you can find for this option, the more appealing it is.
As you can see, this is considerably less daunting.
However, this financial breathing room comes with a price.
There are a lot of companies looking to help you stay afloat, so be sure to compare them side-by-side and point-by-point.
A debt consolidation company will pay off all your outstanding debts, and you will no longer owe your creditors any money.
This calculator will help you to determine whether or not consolidating will actually reduce the cost of retiring your debts.
It's no secret that most people who are awash in debt typically have poor credit, so high rates and fees may do them in slowly.When companies advertises that they can "save you money," what they are usually referring to is simply a reduction in your total monthly payments -- not a savings in the cost of paying off your debt in full.