Government debt consolidation loans fall into a specific category of loans offered through different government programs. These loans are designed to pay off multiple debts by consolidating them into a single payment. This enables individuals to decrease their monthly financial commitment into a more manageable monthly sum. Most debt consolidation programs also lower the interest rate significantly by securing the loan which also decreases the total repayment amount over the term of the loan.These are similar to other types of loans except that they are initiated through government programs instead of traditional lending institutions. The federal government offers a variety of programs, for example, that target students who are carrying debt associated with their education. These student loans can often accumulate to sums that, when combined with high-interest credit card debt and other types of loans, can become unmanageable for many recent graduates. A government debt consolidation loan program is often a helpful choice for individuals in this type of situation..What many people do not realize is that most debt consolidation loans will come with a price tag attached. In other words, you will pay for this service. If you are in a financial situation where you are not able to make your monthly payments, however, a debt consolidation loan will actually save you money in the long run. It can also help to prevent damage to your credit score.You should schedule a free consultation before making a decision. Most programs will also communicate with creditors on your behalf to make all the necessary arrangement to consolidate your debt. To prepare for your initial consultation, you will need to assemble all the information on your current balances and other creditor and loan information. You should also ask for references and make sure you fully understand the terms of the contract before proceeding.A government debt consolidation program can be a financial lifesaver for individuals who find themselves unable to keep up with high-interest loan payments. Many will also require financial counseling to help with managing future spending habits and to avoid accumulating more debt.Taking advantage of a government debt consolidation loan can help you to quickly escape financial hardship while maintaining a good credit score.