You have to understand what debt consolidation before you sign up. This is one subject matter that tends to get overused and misused at the same time. In basic terms, it involves combining multiple debts into one. Many assume that they need a debt company to help them out. All you need is a loan to take care of the problem. This is the only reason why a debt consolidation should ever come into consideration. You need someone to look after your money and make sure that you get everything paid down and/or off.  

1) Find out what each company is really offering. Some of them only offer the debt consolidation in name only. They are just there for counseling, settlement or debt management. They are not there to technically consolidate all your debt into one. Do your research before signing on the dotted line with the company.

2) Ask how long the loan period will be. Sometimes they stretch it out longer than it needs to be. It should be shorter than what you already have. Some companies do this to get more money out of you. It happened to me.

3) Your rates need to be lower than what you already pay. Companies tend to raise the rates for those who are not as experienced in this subject. They make their money off of those who are naive. Play it smart. The higher the rates, the more you will pay in the end.

4) Take some time and read the reviews. This is one step many people miss. Do not just assume that a company who has a big name or a high BBB rating is going to help you. You will have more luck with a company with a high BBB rating, but it still will not tell you the whole story. You should never assume that all bad reviews are being snarky in nature. The person who left the review may be trying to warn others of something.