Drowning in debt and unable to make all your bill payments every month? Thinking of using one of the many bill consolidation services you have been hearing so much about? Did you know that you can do yourself what those bill consolidation services can do...probably even better?

Finance companies offering bill consolidation services exist because there are people who can be helped by them. However, the truth is that not only can you do the very same things they are charging people for, they can potentially ruin your credit when it can be saved. Your credit rating might be the last thing you will think about when you are at a point where you are seriously considering using companies offering bill consolidation services. But foresight is better than hindsight so it is good to be aware of the risks now.

So what do bill consolidation services do that you can do yourself? For one, they give your creditors a call and negotiate the amount that can be paid off and the amount the creditors are willing to "forgive". Once the bill consolidation company has negotiated with all your creditors, they combine all your lowered payments into just one, tack on any fees they charge for using their services, and then tells you how much you should pay them every month. Basically, everything bill consolidation companies could do, you could do -- and if you do those things yourself, you don't even have to spend on the extra fees. However, this isn't to say that it's an easy thing to do on your own, which is why companies offering bill consolidation services exist -- they take care of all the legwork for you.

So unless you just don't have the time or you don't want to deal with your creditors directly, you can be your own bill consolidation service provider. The first thing you should do is contact your creditors. Know that creditors want to get their money back. They want to be paid back. And contrary to what most people think, you can contact your creditors and begin negotiating even before you are seriously in danger of losing your home or your car.

If you anticipate not being able to make all your monthly payments several months down the road, or for instance, your company has given you and all the other employees notice that it will be shutting down in a couple of months, contact your creditors right away and let them know the situation. Inform them you want to still be able to make your payments but given your impending job loss, you are worried you won't be able to make them.

Again, keep in mind that creditors want to be paid, even if it's a lower amount. They may work with you in either lowering your monthly minimum payments until you find another job, lowering your interest rate, or even reduce the amount you owe them and forgo the remaining amount.

Here's another example: if you get behind on your car payments, don't wait for the lender to take your car; call the lender. They may be willing to refinance your car loan, extend the loan for a few more years and cut your payments in half so you can keep your car.

The bottom line is that you won't know what your creditors will accept until you call them and ask. So before you dial that number for a company offering bill consolidation services, dial the number of your creditor first.