Debt consolidation at its simplest definition is finding a way to make all the different debt you have into one lump sum payment, that is smaller than the total of payments that you are making now. This is easy to do, but be aware that some methods may damage your credit report even further. You’ll want to steer clear of those, as well as methods that cost you a lot of money. If you have a little time, and a few bucks for postage, you may be able to fix your credit yourself without even using consolidate debt services. This is easier than it sounds, don’t worry.

The first thing that you’ll need is a copy of your credit report. Many companies online purport to offer you a ‘free’ credit report, but then attempt to charge you a subscription fee for monitoring services, or some other credit type service. What you want is a no frills website that will allow you to simply view your credit report, pulled each time you view it, whenever you want for less than $20 a month. There are a few websites that do this, so ask for that service specifically when you call to talk to a customer service rep about the service.

Now, to consolidate debt, the first thing that you’ll do is contact creditors on debts that are three years old or newer. Try to negotiate a lower interest rate or payment, with the explanation that you are over-extended and want to make sure everyone gets paid. You’ll be surprised how many will work with you. Don’t contact companies with debts listed as closed out, because you will actually affect your credit report negatively in most cases by doing so, as a new or current debt causes you to lose more points than an old one.

If you aren’t sure that you are comfortable doing this on your own, then you probably want to know how to find a debt consolidation service. They are easy to find, under debt consolidation in the yellow pages and available online in droves. One thing to keep in mind, is that they are in the business to make money. Nearly every company out there charges some kind of fee, and some will take the first payment or first couple of payments for them, that was supposed to go out to your creditors. Make sure you are aware of where their cut comes from and whether it will affect your credit score.