Sometimes, it can occur to a client that it may be a bit strange to pay off one loan by taking out another loan.
An understanding of the complete process of debt consolidation will help anyone to understand why it is not only a great idea to consolidate your debt, it is an idea that could put hundreds of dollars a month into your pocket.
A debt loan is necessary when a person has collected several high interest rate credit card accounts and those accounts are making it impossible to pay the bills every month.
With each credit card account there is a set of high service charges, and those service charges are compounded by the number of credit accounts a person has.
A debt professional eliminates all of the high interest rate debt and all of the service charges by replacing them with one low interest rate loan with one set of low service charges.
The end result is that there are hundreds of dollars a month removed from a person's monthly debt, and that money becomes positive cash flow that can go towards paying off other bills or simply be put into a savings account for use at a later time.
The only time a consolidation loan becomes silly is when you consolidate your credit cards but then continue to use them, or if you only have one credit card that you put on to a consolidation loan.
The idea behind consolidation is to take multiple accounts and bring them under one account with the purpose of eventually paying the accounts off and never using them again.
Any other approach to debt control would just be silly.