And if you choose a debt consolidation service that does not charge a fee, one that is already subsidized by many of the creditors that they aim to help repay, you could benefit even more because they will be putting the entire amount that you pay towards your outstanding debts instead of keeping part of it as their payment.

However, non-profit debt consolidation services offer many other services than just debt consolidation and repayment. They also offer consumers advice on keeping their finances on target, developing workable monthly budgets and how to repair a poor credit rating.

Getting your finances straighten out is of course the first step. The debt consolidation service will help you make a list of all your outstanding unsecured debts, how much you owe to each of them and what the total amount you should be paying every month is.

The next step is to work out what your monthly expenses are. These include your mortgage or rent, your utility bills, child care expenses and any other mandatory payments you must make, especially if they are guaranteed by your property. Once your budget is done you can decide how much you can spend each month to pay towards your debt consolidation.

Once you know how much you can actually afford to spend each month in repaying your debts, the debt consolidation service will contact each of your creditors and ask them to agree on a lower repayment amount each month. Sometimes they can even get your creditors to lower their interest rates or eliminate some of the fees that they have been charging you for being late or over your credit limit. Most creditors will want to work with you because they realize that if they don't negotiate a lower payment, they are unlikely to receive any money for the outstanding debt.

Now let's talk about what risks are involved in using a debt consolidation service. Basically, the only risk is if you use a debt consolidation service that is not legitimate or professional. Do some research and even ask your creditors if there is a specific company they work with regularly that they can recommend.

Beyond that there really is no downside. And the upside is that you will have peace of mind in knowing that your bills are being paid on time every month.