When you sign up for a personal debt consolidation loan, it is possible that you may very well wind up paying only a percentage of the total amount of money owed to your list of creditors. By streamlining your owed money into a single monthly payment made directly to your debt-relief organization, you can save yourself a great deal of both time and money. While many people that find themselves in financial trouble can feel all alone in the world, a good debt-elimination company can come alongside you and help you see your way through to financial freedom.Why You SaveWhen you take out a debt consolidation personal loan, you are in essence borrowing a large sum that is used to pay off all your creditors at once. Lenders are often eager to close out accounts that they consider ‘risky’, as continued non-payment means that they either have to waste manpower on tracking down their debtors and coerce them into paying or they instead turn their accounts over to collection agencies that pay very little for each account purchased. If you have a large sum of money ready to offer your lenders on the spot, they will often negotiate a lower rate that can be up to 50% less than the principle amount owed. Personal loans for consolidation offer consumers leverage in negotiations and can help you to save a small fortune.How to Save MoreWhile having a lump sum to offer your creditors is wonderful and can result in having your total amount of money owed reduced drastically, allowing your debt-relief agency to handle your case directly will likely get you an even better deal. Creditors are often more more willing to negotiate low payoffs with debt-elimination agents or consolidation loan lawyers than with the average consumer. One reason for this is that professionals tend to know the ins and outs of the collection laws in your region and can use them as leverage in negotiations. Another reason is the fact that professional debt-relief specialists have often formed positive working relationships with the staff members of various collection agencies and credit companies. This bond can translate into trust-filled and respectful negotiations that can in turn translate into lower settlement agreements for you. Trusting your debt consolidation company to handle negotiations instead of jumping into the action on your own is a wise strategy that could help you to pay just a fraction of the total amount owed to your various lenders.