Debt consolidation is a big business, especially on the internet. Companies advertise offering to ?lower your payments by 50%? and claim to be nonprofits, giving consumers the idea that it will be cheaper through them. It's not. Many firms offer a ?debt settlement? program in case you are unable to make the payments calculated in their debt consolidation program. Some say that they handle IRS debts and student loans, as well.

Why are we so eager to hand our debt problems over to someone else? Anyone with high school math, actually 6th grade math is probably enough, can calculate their own repayment schedules and pay off their own debts if they choose. Anyone who can use a telephone or write a letter can call the creditor and ask about settlement amounts. Usually, the creditor is at least as eager as you are to reach some agreement and get the account off their books.

In order for any of these programs to work, you also must learn to stop incurring debts. That means: stop using your credit cards. Pay cash for everything. That gets us to the place where we are living within our means. The only debts that make sense are secured debts. Secured debts are things like car loans and home loans. If you are unable to make the payments, there is some valuable property that you can surrender to clear the debt.

I'm not saying all debt consolidation companies are bad. They're not. Some of them genuinely work to help the consumer who is emotionally distraught to the point that they cannot work out their own debt issues. It helps to have someone to hold your hand. However, to really end the problem for all time, you must change your spending habits forever.

For real help with changing your spending habits, we recommend Debtors Anonymous at . Good information can also be found in ?How to Get Out of Debt, Stay Out of Debt, and Live Prosperously? by Jerrold Mundis or ?Your Money or Your Life by Joe Dominguez. These and other self-help resources will help you to correct the problems that got you into these debts in the first place.

Celine Mettarod has been paying down her credit cards bit by bit for a couple of years. She predicts she will be completely out of debt within 3 years, including her mortgage. You can read more articles about debt consolidation at