A good debt consolidation company can lower your monthly payments and interest rate by up to half for each of your unsecured creditors. In some cases, they can even eliminate interest charges altogether, although don�t expect this.

The beauty of interest reduction is that instead of simply paying the interest and barely scratching the surface of your debt, you can start paying down the principal immediately. In the same way that debt seems to snowball out of control, a good debt consolidation program can yield surprisingly quick results.

Below is an example of what you might save in interest charges if you used a debt consolidation service and owed a credit card company $3,500:

Total Payment Not Using Service

$7,069.98

Total Payment Using Service

$3,184.98

Amount Saved:

$3,885.00