As I hate to admit it, we were desperate and went through a debt consolidation company. I researched at the time, and thought I found a wonderful christian company. While they told me they charged a monthly fee of $50, they neglected to tell me that the first payment was a complete fee payable to the debt consol company, and not payments to the credit cards. After struggling to come up with the additional payment during the same month (which only reduced our total payment by $50 although it reduced the payment time to 3.5 years), we had to borrow money to pay the minimum payments on all the credit cards as well.
Also, regardless of what the debt consol companies tell you, this will hurt your credit score significantly. ALL the credit card/revolving accounts that are included in the program note on your credit reports that the payments are being handled by a debt management company. They also do NOT remove that comment once the debt is paid in full. And in case they don't tell you, ALL your accounts are then closed by lenders.
After going through the whole mess, I would NEVER do it again. I would instead contact all the accounts myself. I would explain my current situation and then ask for an interest reduction/payment plan along with requesting that my account be closed per MY request. Your account can be closed even though you are still paying off the debt, which is what will happen any way if you used other programs to assist you.
If you are keeping a card for emergency purposes, make sure that it is a different company than the rest of the cards/accounts being placed on plans. Although I had left a card off the plan to have for emergencies (which was also my oldest account), the account was closed due to other accounts with the same creditor being placed on the program.
I don't know if I am sharing all the relevant things from my experience, so if you would like any further information, don't hesitate to send me a personal message and we can talk further.
Good luck in whatever direction you decide to pursue! And as others have suggested, Dave Ramsey is a wonderful resource. Listen to his radio program, read his book(s), attend his seminar if possible. But listen often! Believe in the program, and allow it to change your mindset. You begin to have a new respect for money and the use of credit.
