If you’ve watched television or listened to your car radio, you have probably asked yourself “what is debt consolidation” and how does it differ from debt settlement and credit counseling? Debt consolidation means that you take out a “consolidation loan” to pay off all of your debts and consolidate them into one single loan and payment. This is typically done through a bank and you will simply be adding a new loan and not solving your debt problems. Debt settlement is a process of contacting your creditors to see if they will accept a reduced one-time payment to close your accounts. Again, there are fees, tax implications and negative factors that you will need to consider. Nonprofit credit counseling organizations like InCharge Debt Solutions offer you alternative solutions with less negative consequences in a free counseling session that will help you find the best debt solution for your situation.