Debt consolidation is the process of gathering all your existing loans and combining them so that you may be able to cope with them. This is done with the help of a professional debt management company such as http://www.anewhorizon.org that will help you with the process, and also strike a deal with the companies you owe for you to slowly but surely recover from all your financial obligations. When done right, debt consolidation should result into a much lower, manageable monthly payment that is smaller than all of your existing loans combined.
You and your debt management company will of course agree on how much you can afford to pay and the manner you will pay them. Most companies agree to this because it assures them that they can recover their money, albeit at a much slower pace. This also saves them the hassle of having to chase debtors. In the end, debt consolidation is always a win-win situation.
Nonprofit debt consolidation organizations such as www.anewhorizon.org can assist you in finding the right solution for your financial worries, and they offer advice for free. So go ahead and take that first step towards financial freedom.