As long as people have borrowed money or used credit, there have been versions of the debt consolidation business. The practice actually goes back hundreds of years in one form or another. Because of the sudden downturn in the American economy, the debt consolidation business is booming. And, as with any boom, there are as many disreputable companies as there are reputable ones.

Disreputable companies are seizing on the panic that many consumers are feeling toward their financial situations. Between economic slow down, job loss and real estate devaluation, more people than ever before are looking for debt relief. Between bill collectors and dun notices, they are becoming desperate for anything to help them out of a bad financial situation. Companies, who say they provide these services, are all over television and the internet with their sales pitches. The debt consolidation business is bombarding consumers with deals. The problem is that there are no real deals to be had. Getting out of debt takes time and the consumer should expect to pay fees.

There are ways to get out of debt, and good programs that provide services to help consumers do exist. There are religious based ones as well as more general ones, and each debt consolidation business will specialize in different ways of helping the consumer. For the consumer to make an intelligent decision, there's a necessity in doing research and checking credentials. Many of the online debt consolidation businesses are recently formed, and before handing over personal information and money to them, it's best to know who they are.

The debt consolidation business is largely unregulated but that doesn't mean that the consumer does not have rights, but unlike banks, credit card companies, accountants and lawyers, they can handle and manage money but with few rules. The smart consumer knows what to expect, and what a debt consolidation can actually do for their situation. Most work in a similar manner of rolling all owed debts together, and arranging for the consumer to make one low monthly payment. Often, this will entail getting a loan to cover the debt, and these loans are secured ones. That means a second mortgage or home equity loan, and years of paying it back. There are other types of debt relief that consolidate the payments into one lower monthly one, but require no loan. They are known as debt settlement and debt management, and should be considered as options too.