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Settle Debt Faster. Low Interest Rates - that is the hype.

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

The debt consolidation company pays off your loan fast, you don't. You keep paying them rather.

If you thought making regular repayments by your due date was expensive, try making ONE LOW Payment every month.

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

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

They don't re-negotiate your payment date. That means that they pay everyone's debt 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 get a 30-day late payment once a month - every month-on all three of your credit reports. Late payments stay on your credit history for 7 years (or longer). Feeling good now, I'll bet!

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

Negotiation is something you can do on your own. If you just hate talking to these people you can even authorize someone you know and trust to reconcile a lower interest rate for you on your behalf. If you can't get anywhere negotiating with the very first person you talk to, ask to talk to a higher authority. If you can't get anywhere by the third supervisor, you're stuck.

- Negotiate your own reduced Interest rate

- Stretch your repayment schedule

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

- Write 2 checks: One for the lowest payment and One for any additional money with a note 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 applied to the interest and you'll pay more interest for an extended period. Yeah, that really sucks, certainly not for them. For you.

- Figure out - there are cost-free debt calculators all over the net - what it would take to pay 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 bill, I can have a $1300 debt cleared in 12 months with $66 interest.

- If I continue with the minimum payment, It can take more than 6 years and cost me over $2500. Actually that one action that I took put over $1134 back in my account - in one year. And I did it myself. Without debt consolidation fees!

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