Debt consolidation may reduce the number of creditors but you still owe the debt.

you may want to get a second or third opinion from expierenced lenders in your area.

Debt consolidation is the practice reducing the number of creditors whom you owe money to. This is normally done by choosing or partnering with a lender (bank or credit card) that will give you the best terms and rates in order to buyout the debt you owe to other creditors. The benefit is 1) easier debt management with one or two monthly bills to pay and 2) an improved credit rating by simply reducing the number of active creditors that show up on your credit report. This is what your loan officer wants to see, so your FICA score (credit score) show higher, which is better.

Debt negotiation is the practice of working with your creditors to either 1) reduce the amount of debt you owe to them or 2) get better rates and/or terms for existing debt you are currently servicing. Debt consolidation and negotiation can both be part of an overall debt reduction strategy.

Debt consolidation will lower your interest rates and stop any late payments and over the limit fees. Debt Negotiation is more of an alternative to bankruptcy. You cannot make your payments anymore.