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Most people think that if you go in for a debt consolidation loan or service, that all of your credit cards must be closed. This is simply not true. People consolidate their debts all of the time. Many times people want to keep at least one credit card active. In settlement services, any debt that is being negotiated is most likely going to be closed. But this is not the case with consolidation.

Since a debt consolidation is a payoff of the loan, you can continue to use your credit cards. It is recommended that if you have a consolidation loan because you were in over your head, that you do not use the credit card. However, for millions of people, the debt consolidation is simply a way to reduce a monthly payment, and is not something they are doing to keep from bankruptcy. For people like this, keeping a credit card is not only an option, however is a very wise idea.

Understanding about consolidation helps to understand why you are able to keep your credit cards. When your cards are paid by the debt consolidation, the credit cards don't cancel you because they have been fully paid off. They do not care if the pay off was because of the loan or not. Most debt consolidation services also do not care if you keep them active, but they may recommend classes on how to manage your use of credit cards. This can be recommended, especially if the debt was because of excessive use.

If you are in over your head in debt, then keeping active credit cards is never a good idea. Find another way, like a secured card, where the money that you wish to have access to is paid into the card. Until you have the financial discipline to use cards responsibly you should limit your access to them.

There are a number of misconceptions about debt consolidation. It is not nearly as severe as a bankruptcy, nor are you reducing what the credit agency gets paid. It keeps your credit lines active, if you wish to continue to use them. Debt consolidation services are an excellent way of bringing high interest credit card debts down to earth and still maintain your quality of life.

In a nutshell, by a thoroughly researching and then comparing several debt consolidation agencies, you are able to select the service that meet your financial situation properly, moreover, besides the cheapest interest rate the market of debit consolidators is offering. Nevertheless, it's advisable to work with a seasoned and reliable debit counselor before arrive to any conclusion, this way you will save time because of seasoned advise & money by getting the best results in a reduced span of time.

H. Milla G. runs the Best Debt Consolidation Companies website – where you can see his best rated debit consolidator service recommendation.

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Tags: Debt, debt consolidation, debt relief, debts