Rolling all of your debts into a single loan is a good idea - in theory. In fact, it can be a great idea.

Turn down offers for new cards or credit line increases on your current cards. Credit's tight, and chances are, you're not getting many offers anyway. But if you do, remember that the less credit you have available, the less trouble you can get into.

If you are, consolidating at a lower interest rate can help you pay off your debt faster. But if there's even a small chance that you'll spiral back into debt, it's not for you.

If you default on an unsecured debt, you won't lose anything (except points on your credit score).

It's not about having it all. It's about having what you value most.

If you'd asked me a few years ago about debt settlement companies, I probably would have told you to avoid them.

You settled a debt instead of paying in full will stay on your credit report for as long as the individual accounts are reported, which is typically seven years from the date that the account was settled. Unlike with bankruptcy, there isn't a separate line on your credit report dedicated to debt settlement, so each account settled will be listed as a charge-off.