If you are suffering from a large debt, your main priority should be to work via a consolidation service to get the best possible debt settlement. A debt settlement will permit you to pay off creditors with cash you obtain in one large disbursement while at the same time salvaging your credit rating.

That sounds easy enough, but what is the procedure to consolidate your debt? That is a bit more complicated.

You should begin by asking your creditor to get rid of or reduce interest carried forward or brought forward.

In many cases, debtors do not ask creditors for assistance and wind up in the following trap: the creditors first lift the equated monthly emoluments--most of which comes from increased interest rates. When the debtor can't pay off the increased interest rate, he is required to pay a penalty.

The actual dollar amount of the penalty will be insignificant, but with his already-spiraling debt, the burden of those extra few dollars unnecessarily added will considerably add to his mental burden.

If this is your situation, you need to take control and start to eliminate your interest and penalty right away. Once you do this, your creditor will reciprocate by giving you the benefit of the doubt, since he is no longer at risk of losing his principal.

Your next step is to consolidate all your credit card accounts by converting them into a single payment instrument--a single bill.

After you calculate the average interest applied to more than one credit card account debt, you can apply the formula for the consolidated credit card account to repay the optimum (lowest interest rate) amount only, thus reducing the average interest rate.

To make things even better, you will be able to fix your credit past by paying off all of your creditors at once. And once the amount you obtain is distributed among your creditors, you will gradually begin to recover as each creditor cancels your debt. The participating creditors will both help you recover your credit and make your repayment easier and further their interests by recovering a principle amount that was more or less sure to end up as a write-off.

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