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Posted in Paying Your Bills
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Jodygirl010206

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How does debt consolidation company's work?
Do they set up a certain payment amount for you, you send that amount to them, and then they distribute it to the open accounts/debts on your credit report? And of course take a monthly fee for themselves?

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Beware of debt consolidation companies since far too many have less than stellar reputations, actually hurting their client's credit more than helping.  Instead, search for Dave Ramsey's site for intelligent ideas on how to get debts repaid. And do take the time to read the articles on this site so you can better understand how credit works, which is something you will use for the rest of your life.

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Your idea of a debt consolitation company is about correct.   They also negotiate settlements with every debtor if they can.    Just as "jwsister" stated, be cautious of the firm you select.  There are many "fly by night" firms who are not on the up and up.  Ensure you check their creditials very carefully and review reviews by others who have used them.  The FTC has a large database of complaints against such firms. 

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