Most Americans have not been trained to thoroughly understand how to use credit well and avoid the consequences of its misuse. As a result, the materialistic society in which we live has led to a significant increase in consumer debt that has many people in financial difficulty. Sadly, many admit that they don't understand what went wrong and how to fix it. But there are a number of alternatives for debt consolidation and credit repair from which they can choose. Debt consolidation can occur when a debtor takes out a debt consolidation loan to pay off high interest credit card and other debts with a lower interest, often secured, loan. It can also occur when a debt consolidation service begins managing the debt of a consumer by negotiating for lower rates with all creditors, receiving one payment each month from the consumer, and distributing that payment to all the remaining creditors. These plans can help someone reduce debt faster and handle debt easier, as long as they are administered by legitimate agencies. Attorneys can also help with debt consolidation, especially in difficult cases where there are complex negotiations that need to take place.