The basic philosophy of debt consolidation is that you borrow enough money to pay off your creditors at a favorable interest rate that allows you to pay off your consolidation loan over time, while costing less money to do so. If you approach consolidation with a level head and with the serious intention of tackling your debts once and for all in 2008, it can be a very liberating experience. Debt consolidation can put you back on the road to financial wealth and personal freedom quickly and while saving you money along the way.
Tip #1: If you cannot consolidate your debt while achieving a lower rate of interest, there is no point in consolidating.