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Personal debt consolidation can be your saving grace when it comes to getting out of debt. One of the hardest parts of getting out of debt on your own is knowing where to begin and keeping up with the hundreds of bills and letters that come flooding in everyday once you get in over your head. Oftentimes, we think, “If I could just get some breathing room to sort things out, I could get rid of this debt!” Personal debt consolidation loans are designed to do just that.

Personal debt consolidation is both a way to reduce your interest rates and fees and form a plan for paying off your debt. For example, if you have five different credit cards, a home equity loan, an auto loan and a handful of student loans, it can be very difficult to know which to pay off first. Each lender demands with equal urgency that you pay off your loan immediately and each one is levying your fees and interest for each day you are late. But you can only afford to pay one at a time – not to mention you still need to feed your family and pay the bills.

Personal debt consolidation removes you from this sticky situation. When you get a personal debt consolidation loan, all of your loans are packaged into a single payment that is due to just one party. You don’t have to decide whether to pay off your credit card, your home equity loan or your student loans. All those separate accounts will be rectified and you will only owe the holder of your personal debt consolidation note. This removes the stress of having multiple overdue notices and also reduces fees. Personal debt consolidation loans also may give you a lower interest rate.

What personal debt  consolidation loans do not do is magically wipe away your obligations. True, your credit card company will stop sending you letters, but you still have to pay back what you owe. If you do not pay back your personal debt consolidation loan in full, you can face higher interest rates, bigger fines and a worse situation than you began with. Because of this, it is important to remain focused on your personal debt consolidation loan. Do not get a personal debt consolidation loan simply to buy time – you should have a clear, actionable method for paying down your debt before you consolidate your loans. Some debt consolidators and debt counselors can help you build this plan based on your income and financial situation. Do not get another credit card or take out more loans until you can get your finances under control.

Personal debt consolidation loans are not a blank slate – they are a second chance. Instead of having the cards stacked against you, a personal  debt consolidation loan puts the power to reclaim your finances in your hands. Whether you use this opportunity to climb out of debt is up to you.