Is finding a debt consolidation specialist a good idea or a waste of money?

Absolutely recommend consolidation. Your interest rates are probably very high as well, particularly if there are credit and store cards involved. Consolidation into one loan, hopefully you will also be able to get a lower rate of interest. But none of this is worth doing unless you are serious about curtailing credit card usage. I used to be a Bank Manager and did allot of debt consolidation, mainly for younger people who had too many credit cards and easy to get finance deals - those deals usually mean high interest rates. If you consolidate, get rid of the credit cards, or only use ONE. Seriously being in debt sucks big time, you are totally at the mercy of paying off loans every month and you never get ahead.

It depends--will you be able to make a good plan to pay it off on your own and stick to it? If not, just make sure that the company you choose is reputable. If it takes the stress off of you so that you can make more income to pay off the debt then it is a good idea.

it will make your credit report look bad. I would try to make a deal with the places that you owe money to yourself. ask if you can make payments or something.

I have heard once you contact a debt consolidation business, that goes on your credit negatively. So, that makes your problem worse. Your best bet would be loan consolidation through your bank or find a low interest credit card to transfer your debt. If it makes you feel any better, I have debt that I need to get rid of too. I am making strides to get mine paid of. Best of luck to you!

I am not a certified financial planner, but 1) I've been through the same exerience living with high debt ($18,000) from living in the city with roommates and alone paying outrageous rent/utiliies/parking, commuting expenses, car expenses,gym membership (to lose weight i gained from my sedentary desk job), and school financial loan debt and just trying to have somewhat of a social life in a city (with so many places to eat and go) and fashion sense and 2) have been presented with a debt consolidation program. If your debts are on high interest credit cards that are fixed rate, try to pay the highest balance/highest interest rate card(s) off first- double, 3 times or more of the minimum to pay it off faster. If your debts are on high interest credit cards that are variable rate, try to transfer the balance onto fixed interest credit cards if you own any, as long as the transfer fees are not too much. If you have like $5,0000 or more on a high interest variable rate card, don't try to transfer all of it; pay it off as much as possible like $400-$800 a month and alternate making large payments to the high balance/high interest variable credit cards. Whatever you do, don't open a variable rate interest loan to consolidate your debts. If your credit is already shot or unless you cannot make triple digit payments, then maybe consider a fixed rate loan and shop around for a good rate because a loan will reflect negatively on your credit report. Before you try to open a loan though, be sure to check your credit report online from all 3 credit agencies (you can do this free once a year at a certain time depending what state you live in). Do not try to transfer balances onto newly open credit cards-as that will be a ding against your credit report. If you can, try to live with roommates that you know and trust or move in with relatives just so you can pay off your debts as soon as possible and have a little money saved. If part of your debt is from student loans, remember you can consolidate your student loans and have flexible payment plans depending on your source of the loan. To finally answer your question, a debt consolidation specialist, if you have to pay money, is a waste of money unless they can give you a good low interest rate on a fixed interest loan to consolidate your debts. If you need a free financial needs analysis done (to figure out your finances and how much you should be saving vs. the maximum amountt you should be spending on certain things), try to look for a company that offers free Financial Needs Analysis such as Primerica (under the Citigroup Financial services group). They also offer fixed rate loans too. Contact your local agent.