Credit consolidation is the act of transferring your various existing loans into a new loan with one new lender. A debt consolidation company will buy all your current loans off your existing lenders at a cheap price, and then handle your debts with you.
Depending on the consolidation product, a number of different types of loans can be transferred together. This can range from your home loan, to your credit card loans, and in some cases your student education loans. The new lender will pay off your existing banks and credit companies on your behalf and close the accounts. They then arrange a new payment schedule with you and can include lower interest rates, a different annual fee, and a different loan term.
There are a huge number of different free debt consolidation services on the market and it can be a daunting task to choose the right one. A good method is to look up credit consolidation reviews for any provider you are considering and try to find people who have had experiences with them. Look for companies that have examples of great customer service and don’t mind taking the time educate debtors on their options and the whole consolidation process.