If you are overburdened with debts to several different creditors, debt consolidation can seem like a dream come true. While there are definite benefits to working with a qualified and reputable debt consolidation organization, you should be aware of the various fees that are typically associated with the service provided. Three major charges are associated with consolidation loans: an upfront fee, a regular monthly fee and a monthly interest fee. While consolidation can streamline your credit payments and ensure the safety of your credit report from any further damage due to late or non-payments, you should make sure that a consolidation loan would actually save you money before you sign on the dotted line.

When you work with a debt consolidation organization, whether it is non-profit or for-profit, they will require you to pay an upfront fee for their services (though the non-profit may call it a suggested donation). While it is perfectly reasonable to charge a fee for debt consolidation services rendered, since everyone has to make a living, some disreputable agencies charge a lot more than they should.