On the surface, consolidating debt does seem like the model solution to the dilemma of too many debts and not enough cash. Debt consolidation is only part of the answer to the problem of having too much debt. If you disregard the rest of the solution, you may see no benefits, and you might even wind up worse off than before. The promises of debt consolidation are alluring; a debt consolidation loan will let you pay off all of your current financial obligations with a single loan. You can pay a single bill that pays for all of your debts. You can even save money if you get a lower interest rate. Consolidating debt seems like an ideal situation, and wouldn't anyone want to take part in that? You won't have to concern yourself with various deadlines each month. Based on the heavy advertising for debt consolidation loans, many consumers with financial struggles might reasonably assume that obtaining a loan that lowers your monthly payments is all that is required to achieve financial freedom. Smart individuals know there is far more to finding financial independence than just applying for another loan. For a lot of people, the problem debt is one of a lack of discipline and a lack of financial training. Fixing financial problems by paying off the debt isn't going to help someone who compulsively spends more than they have, nor is it going to help someone who doesn't have a grasp of late fees or how interest compounds. Getting the debtor out of trouble is great, but keeping the debtor out of trouble from here on should be the main goal. An experienced credit counselor can properly assess an individual's financial situation. A counselor can see how to help the debtor overcome the biggest problem, which is one of careless spending. A credit counselor can examine the individual's financial history for clues as to how the debtor got into the situation in the first place. Credit counseling agencies may be able to provide access to loans, but their primary purpose should be to teach. The counseling agency can help the consumer learn where she made mistakes, explain the circumstances in language that the consumer understands, and offer solutions as to how to avoid the problem in the future. Getting out of financial trouble is an admirable goal, but the big picture involves avoiding financial burdens.

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