You are not alone. Thousands of us are caught in the debt trap each year. Many approach debt consolidation companies, but such companies should be handled with care. Statistics show that the average American currently has thousands of dollars of unsecured debt. Credit cards and loans are so easily obtained, it is very easy to rack up expenditure, with few or no assets to show for it. (PRWEB) April 18, 2005 -- You are not alone. Thousands of us are caught in the debt trap each year. Many approach debt consolidation companies, but such companies should be handled with care. Statistics show that the average American currently has thousands of dollars of unsecured debt. Credit cards and loans are so easily obtained, it is very easy to rack up expenditure, with few or no assets to show for it. Debt consolidation, can however work well and improve your standard of living. Your choice of company should be informed and based upon careful research. Many websites have been created to explain some of the pitfalls of debt consolidation and provide support in your search for an appropriate debt management partner http://www.advenlo-debt.com/enlighten/Debt Consolidation=1 ). In many cases this solution may not be the appropriate route for you. In other cases loans may be repaid much more quickly, cheaply and with less aggravation when such a debt management strategy is applied. They will attempt to give you some guidance on consolidation and management strategies but inevitably the final decision is yours. The purpose of this release is to make your choice of debt management strategy and partner, an informed one. Let’s start by looking at what debt consolidation is: The company you have chosen to service you will negotiate with your existing creditors and seek the minimum contribution they will accept. Your agent will in turn charge you one monthly sum representing all your payments for that month (including his charges!). Money isn’t loaned and you still owe money to the same creditors. The terms of your agreement with the creditor however may be vastly altered in your favour through debt consolidation. Typical loans that may be consolidated include outstanding debts on: - Credit cards - Medical bills - Personal loans - Utility bills - Taxes The application of a debt management strategy can sometimes be so successful that it leaves you able to pay more than the minimum amount, remember by paying more to the company (and therefore your creditors) you will be saving money over the term of the loan and shortening your period of debt. Debt consolidation really can work but the circumstances need to be right. Your creditors could finally be being paid on time and stop those harassing calls. Creditors may acknowledge payments as prompt, good payments and you may see your credit rating start to improve in a very short space of time. A list of resources may be found at http://www.advenlo-debt.com/enlighten/Debt Consolidation=1