Debt consloidation, same as a loan?

I am looking to consolidate my loans but my credit is bad and so far I can not get a debt consolidation loan. It is cracy because I could afford the monthly payments, just not when I am paying 10 creditors at a time. Does the debt consol. company pay the debt, or do they give you the money and then you have to pay the debt? Does debt consolidation make credit even worse? Any advice is appreciated. I am on the verge of just filing bankrupcy, but I am not sure things are THAT bad yet. I make decent $$ I just have a hard time paying so many different bills.

debt consolidation will make your repayment process easier with the creditors. All bills will combine under one payment. You will have to make one check to the consolidation company and they will be posting the payments to your creditors. This program is highly beneficial for those who are struggling with paying high interest rates for their debts. The counselor will get a reduced interest rate from all your creditors. Some late payment fees can also be waived off, hence the total debt will go down.

The consolidation company does not pay everything to your creditors in the first shot. You need to make the payments every month and they will be adjusting it towards all your accounts included in the plan.

Debt consolidation is not going to hurt your credit if you compare it with your present stage. It's always recommended to pay on your own. That's one best thing you can do for your credit. In some cases, this is not the option. Debt consolidation is meant for those people who want to take control over the situation and avoid defaults, high interest rates, collections etc.

Even if you are thinking of filing bankruptcy, you will have to undergo credit counseling first. The new laws have made filing of bankruptcy harder. You have to qualify in the means test before your debts are to be discharged in bankruptcy. Take the credit counseling and know your options. Your counselor will prepare the plan according to what you can afford each month. Besides, he will advise you with budgeting so that you don’t fall short in your payments.