If you wish to obtain lower monthly payments on your bills and replace multiple debts with a single monthly payment, then you may take help of debt consolidators to negotiate on your behalf. Debt consolidators work for a debt consolidation company and offer services to help you manage your bills and get rid of debt faster.

How debt consolidators can help you

Debt consolidators provide you with a debt consolidation program in which they negotiate with creditors or collection agency to simplify your monthly payments and reduce or eliminate late fees and over-limit charges (for credit card debt). Every consolidator usually starts off with a free consultation session wherein he evaluates your financial standing and determines how much you can pay your creditors on a monthly basis.

Once the free consultation session is over, the debt consolidators will help you get enrolled in the consolidation program and then guide you throughout the process till you pay off your bills completely. Here's how debt consolidators can help you while you're in a consolidation program.

• Negotiating with creditors: Debt consolidators do an income and expenditure analysis and propose a payment plan to the creditors or collection agency (CA) after taking your approval. Then they start negotiating with the creditors and CA in order to reduce your interest rates and freeze late payment fees and penalty charges on your accounts.
• Accepting monthly payments: Once you start sending monthly bill payments to your debt consolidator, he'll distribute the payment amongst your creditors and CA.
• Monitoring your financial situation: The debt consolidator monitors your financial situation in every 6 months. He may negotiate with creditors/CA to let you obtain a different payment plan depending upon any change in your financial situation.
• Budgeting and money management: Debt consolidators will help you develop a well-planned budget so that you can continue with the monthly payments without going into default. You'll also get useful tips on how to manage your money better.
• Stop harassment by creditors/CA: The debt consolidator manages all communication with your creditors and CA. By helping you to meet up your monthly payments, the consolidators protect you from harassment by creditors or CA.
• Helping you to save more: Debt consolidators help you save thousands of dollars as they work towards reducing the interest and late fees you pay on your bills. Thus, they reduce your debt burden and simplify your financial life.

How to choose the best debt consolidator

Here's a 4-point checklist on how to choose the best debt consolidators.

1. Check out online reviews and client testimonials about the company.
2. Find out its online reputation with the BBB report.
3. Ask about their fee structure for offering the consolidation program.
4. Check out the accreditations of the company.

No doubt, debt consolidators can help you get out of a debt trap and restore your finances back in order. They offer you an organized payment plan to pay down your debt without the hassle of managing multiple bills and handling creditor/collection calls.