It is very easy for debt to get out of control. With credit cards and it being so easy to open up lines of credit even without a good credit rating, many people find the idea of buying things on credit and paying for it later very appealing. However, too many of these purchases can result in bills that leave you scraping by each month just to meet minimum payments. If this sounds like something that you’re experiencing, you might want to consider bill consolidation. This process involves a debt consolidation company offering you a loan equal to the amount of your debts. The company then pays off your debts, and instead of paying your debtors, you make one payment a month to the consolidation company. While this sounds easy, there are a number of things that you need to keep in mind before you consider doing this. • Some companies are trying to scam consumers. There are unscrupulous companies that will take your money and run, so make sure you are working with a company that is reputable. Check the Better Business Bureau, and do thorough searches online. • Your credit will be affected. Debt consolidation puts a negative blip on your credit rating. However, if you are at the point where you are considering consolidating your bills, chances are good that your credit has already taken a few hits. • Your interest rate will be lower. You will end up paying a lower monthly payment, because your interest rate will be lower. A lower monthly payment means a longer loan, but for many people, it makes the debt much more manageable. As you can see, this can be a useful tool. However, don’t let your new low balances tempt you into running up your credit again. Instead, just cancel your cards and work out a budget that will help you avoid this in the future.