When I consolidate bills, will my debt be significantly less?

When I consolidate bills, will my debt be significantly less?

Not necessarily. Consolidating your bills will help you realign your debt so it is more manageable. It can sometimes, like in a debt management plan, also help you establish a lower interest rate for your debt. Currently you probably have various debts with various lenders each with their own interest rate. And if you have multiple credit cards, undoubtedly the interest on them is expensive. By consolidating your bills, you will be able to get a better handle on your debt and align it better to start paying it off, but simple consolidation will not make your bills significantly less.

 

With that said, a program like debt settlement, where a provider negotiates down your balance can indeed reduce your debts.

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