Debt consolidation is a legal process of combining all debts into one debt. Most people acquire loans from banks, loan companies, credit unions and other financial institutions to combine all their debts and make a single payment. A debt consolidation service is a finance company that acts as a go-between or a mediator between the debtor and the creditor. A debt consolidation service aids customers by attempting to reduce the total bill value. This is done by negotiation. These services also provide detailed information on credit. They help by addressing issues such as credit management. Debt consolidation companies provide online services and free information to consumers. For this service, debt consolidation loan seekers are required to fill in their basic financial details on the web site. Filling these details involve giving out bank account and other important financial information, so always ascertain that the web site is secure before filling in these details.Personal debt in the United States is at an all time high. Emphases on material possessions and easy access to credit have crippled many consumers financially. Many homes have been mortgaged and re-mortgaged until they no longer hold any credit value. With no savings and no home equity, consumers are at a complete loss when their bills and expenses suddenly outgrow their incomes.Contacting creditors and informing them of the situation can correct stress caused by burdensome debt. Most reputable companies are willing to work with their customers to help them correct this problem. It is a tedious and time-consuming task to contact each credit card company and to negotiate with them a restructuring of debts. This is where a debt consolidation company helps its clients, since it is the duty of a debt consolidation service to handle these tasks for their customers. These services contact credit card companies via the phone or e-mail and make arrangements regarding the consumer’s bills. All areas of the customer’s bill are subject to re-arrangement. Interest rates, late fees and over limit fees are reduced. Many debt consolidation services allow the debtors to include medical bills, IRS debts, old utility bills as well as unsecured loans in their debt consolidation. In addition to all this, the repayment period can also be lengthened. In many cases, the whole debt amount can also be reduced.Debt consolidation services also provide counseling and administer ways for the customer to avoid going through similar problems again. Debt consolidation services devise budgeting schemes to stave off bankruptcy. These services also include arranging loans for clients. Clients are advised to give up all credit cards and to save up money for purchases, retirement and emergencies. Credit repair is one of the goals of most debt consolidation services and they help in keeping credit ratings at a basic minimum level. Some non-profit organizations also provide debt consolidation services but they only specialize in counseling.Before signing up for a debt consolidation service, remember that debt consolidation does not wipe out the debt, it only makes repayment simpler. Clients can sign up for debt consolidation without utilizing these services, but it is advisable to heed the advice and services of professionals and experts.