* Consolidate numerous smaller payments into one single monthly payment. For example, put all the credit card payments into one payment. * Acquire overall lower interest rates and lower monthly payments. Debt consolidation companies will negotiate to lower interest rates, lower monthly payments, and sometimes even negotiate a settlement of a particular amount of the debt. * Gain tax advantages if possible. Debt consolidation can cause tax reduction in some cases. For example, the interest people pay on their loan may be tax deductible. * Even those people who have bad credit qualify. Generally speaking, a credit score of 620 or below is typically classified as a poor score. * It is also considered an important step in establishing a good credit profile when applying for a home loan. Loan providers may recognize that most people who enter such a program are trying to repay their financial obligations in good faith.
