Creditors often subsidize all or a large part of most debt consolidation services. They are not doing this for humanitarian reasons, but because they understand that getting some money, possibly all the principal, is better than getting no money or being forced to accept the terms imposed on them by a bankruptcy court.

Through debt consolidation services creditors can still negotiate, making them feel that all hope is not lost and that they can at least get their principal back. 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 programs are one of the few win-win situations for consumers. Besides both the creditors and the debtor gaining some peace of mind and saving money, debt consolidation services also get rid of one of the mental costs of debt.

Most good debt consolidation companies have a phone number for their clients to give to creditors or debt collectors. In other words, they handle harassing phone calls for you and allow you to focus on rebuilding your financial life.