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Debt consolidation is the act and process of taking out one loan to pay off many other loans and bills like credit card bills or student loans.

The main aim of debt consolidation is to basically reduce the total amount of loan repayment through interest rate reduction.

Many debt consolidation companies, programs and services have argued the benefits and advantages of debt consolidation when one is in cycle of debts. But the question is:

Is debt consolidation really useful in helping people get out of their debt problems?
While I agree that debt consolidation can help debtors solve their debt problems, many debtors really have much difficulty to get out of their debt problems even after they consolidate their debts.

Why is that so?
Think about it - Most of these debt consolidators are in debt problems because they spend on credit and are used to spending more than they can afford to. As such, they eventually run into debts in the long run since they are always spending more than they earn every month.

After debt consolidation – these debt consolidators will have their credit card balance clear and a single monthly loan payment (with extended repayment period).

With a lighter loan repayment amount, most of these people will begin to relax and usually over spend on their monthly budget again in the near future.

By doing so, they will eventually run into debts again. Thus, it is not surprising to see many people who have had consolidate their debts before to run into debt problems again.

How does one get out of debts?
Debt consolidation is a tool to help debtors get out of debt problems. Unfortunately, many have used it to increase their debt problems as mention above.

The only surefire way to get out of debts is really to adjust your spending habit and commit to a discipline lifestyle. If you ask me, the get out of debt formula is really simple:

It’s either to earn more money or spent less money.