There are several benefits of debt consolidation which vary depending on the type of debt consolidation you choose.  First, by having only one monthly payment you may find it much easier to budget accordingly and this may give you a fresh start to saving.  Secondly, you will more than likely be saving on interest by consolidating the various bills into one with a lower rate.  Third, and perhaps the most beneficial, you will avoid further damage to your credit score.  By paying off the various credit cards or loans your credit score will receive an increase and with continually timely payments on the one line of credit your score will continue to rise.

The negative aspects of debt consolidation relate to how and where you secure the consolidation credit line and if you are committed to changing your financial habits.  If you are unable to secure a 0% credit card and move your various bills onto a credit card or line of credit with a high interest rate, that interest rate can rack up quickly and create an even larger balance.  The other serious item to consider, if you are not committed to changing the way you use credit cards and continue with your old habits you will simply continue to rack up a larger and larger debt.

As there are many pros and cons to debt settlement and debt consolidation it is wise to consider both options and speak with a Long Beach debt settlement attorney or a debt consolidation company when reviewing what option is best for you.