Yes debt consolidation is legal.  Debt consolidation companies negotiate with your creditors. This is not necessarily an easy process, but the better companies have years of experience and know how to land you the best deal.

For many people, without debt relief they would be forced to declare bankruptcy. So, negotiated settlements are in many ways the least painful and fairest way for all parties to recoup their losses. For debt consolidation clients, it is usually the first step in a new life of financial responsibility and independence from pesky creditors.