There are many types of debt consolidation programs in the world at present. When people think of the word ‘program’ they think of authority positions and specialized care systems. The truth is the consolidation practices come in two types. These types are government mandated and private sector help.The government mandated financial rulings require several different criteria to be fulfilled before an individual can use that ruling to help them. For instance, an individual with ten thousand dollars or more in credit debt can receive aid from the government in regards to debt consolidation, interest rate freezing and reduction, and settlement negotiations. There are many other similar aid packages and rulings people can use as well.The private sector is a different story. These consolidation firms will vary in what they require from an individual. Some will need to see an individual’s credit report. There are other firms that really do not care how bad the borrower’s credit rating is. Due to the variety of companies and their practices there are consolidation loans available for almost everyone.Student loan payments are one of the biggest issues an individual will face in their life. These loans are extensive and can lead to financial ruin if the former student finds that they are having trouble meeting their payments. Thankfully there are companies that actually specialize solely in consolidating student loan debts. This means that the previous loans will be paid in full and the entire amount owed to these various individuals will be combined into one lump sum. This sum is the amount the lender loaned to the individual. As such there will be only one low monthly payment for the individual to deal with instead of the stress of attempting to pay several on a timely basis.A debt consolidation loan is a lending practice that can be used for any type of monetary deficit. The process if undergoing consolidation will often include settlement negotiations to lower the overall amount of money the borrower will owe altogether. This means that not only do they end up paying less per month but the amount of money owed is less overall.If an individual has several accounts to pay on every month and there is a chance that they might miss a payment solely due to the shear number of the payments being made, consolidation is for them. The simplicity of this path to financial freedom cannot be overstressed.