Millions of Americans are finding it hard to pay their bills and dig themselves out of debt. Many are turning to debt consolidation for help. While the biggest problem seems to be credit card debt, other debts such as; tax debts, medical bills, student loans and personal loans can all be included in a debt consolidation plan.

Debt consolidation is a simple process that can be done over the Internet. A person needs to search for a lender that is listed in the Better Business Bureau. It is also recommended to find a lender that is part of a non-profit organization. After a lender is picked, an application is filled out with personal information as well as debt amounts, account numbers and present monthly payment amounts. A debt specialist will then give you feedback on what your 1, new monthly payment would be and how long until your debts are paid. If both parties accept the debt consolidation plan, a signature will be required to get started.

The lender will deal with the creditors. In most cases the lender will get the creditors to lower the interest rate and in some cases even lower the amount owed.

The creditor will benefit from debt consolidation because they know they will be receiving money from this lender. From their standpoint, they would rather get some money than have the debtor file for bankruptcy and get nothing.

The lender is also benefiting from the donations that the non-profit organization receives for their services.

The debtor receives the greatest benefits from debt consolidation. They now have one monthly payment, which is smaller than their combined payments were before. They will get their debt paid faster due to the fact that (A) they cannot use their credit cards at this point. The creditors have closed their accounts, but left them in good standing. (B) The interest rates have been lowered; therefore the debt will be paid off faster. Another benefit from debt consolidation is that you can reestablish your credit without having blemishes on your credit report.