A debt consolidation program will save the debtor time and money. The debtor will enroll in the program where a representative for the debt consolidation company will negotiate with your creditors to lower your interest rates. Any late fees and over the limit charges that have accumulated on your accounts will be reduced with negotiation. The debtor will no longer have to pay multiple bills to individual creditors. One payment will be made to the debt consolidation company every month. The amount then will be distributed amongst your creditors. It will also alleviate harassing phone calls from creditors and collection agencies.
Debt relief companies have debt settlement programs, which a representative from the company will negotiate with your creditors to reduce your outstanding balance. This will allow you to get rid of the bills and pay much less then what was previously owed.