Debt Reduction Consolidation and Negotiation
One model for debt reduction consolidation is where you, or the company you are working with, come up with a plan to pay down your debt in a certain amount of years. This method requires no loan on your part. It requires budgeting and possibly negotiation with your creditors to modify their payment terms to where you can afford it.
If going through a company, you will make one payment per month. They will use your one payment and distribute it among the creditors plus taking out their fee.
The big danger in using some of these companies, especially the less reputable ones is that they will sometimes make the payments late or even miss a payment altogether. This could screw up your credit score even more.
