Debt consolidation programs are beneficial to some people who have quite a bit of credit card debt. These programs are typically not able to eliminate the credit card interest rates like a bankruptcy can, but they are beneficial in some circumstances.
Debt consolidation is not the same thing as a consolidation loan. It is where you consolidate all of your credit cards into a single payment so that you do not have to keep up with them all. Debt consolidation is often not the best option for those who have a great deal of unsecured debt. Many times, a Chapter 7 or Chapter 13 bankruptcy is the best alternative. In most bankruptcies, the debtor pays back none or very little of the unsecured debt. That allows them to start saving for retirement or their children’s education.