Debt consolidation service is a company or a non-profit organization that helps consumers consolidate their debts when traditional lenders like banks and credit unions are unable to help them. These types of debt consolidation services include credit counselling agencies and bankruptcy trustees. They don’t consolidate debt by lending money. Instead they negotiate an alternative payment arrangement with a client’s creditors which either lowers the client’s interest rate or the amount of debt that they owe. The end result is that the consumer ends up making one consolidated payment to the agency each month until the agency’s program is complete.