Creditors understand that something is better than nothing. It’s better for them to help you out and recoup some of their money than to force you into bankruptcy and possibly collect nothing. Through debt consolidation services they can at least recoup the principal on the debt.

It’s also important to note that most debt consolidation companies are organized as non-profit companies, which allows credit companies to regain much of their lost interest through tax write-offs.

Debt consolidation seems to be one of the few true win-win situations out there for the consumer.