Debt consolidation is one of those subjects that gets people riled up. At its most basic, it's a financial tactic, a method of re-arranging obligations. In its pure form, debt consolidation is not a magic act: no debt disappears. Debt does not even decrease. What it does is roll up small debts into a larger package and re-finance the larger package.

Businesses do this all the time. They might call it restructuring their debt. In the right hands and for the right reasons, it's not only legal, ethical, and moral, it's probably sound business and just plain smart.

Ordinary people can consolidate their debts, too. The reason debt consolidation is such a misunderstood and unappreciated subject among debtors is that debt consolidation won't work for everybody. Many people who could use it simply won't qualify (you need pretty decent credit to make it work). Some people who might qualify might not really derive much benefit. It takes some organization, figuring out, and paperwork, and if you only save a couple of bucks, maybe it isn't worth it.

Debt consolidation isn't debt voodoo, you know, where you owe a company $1,500 and you walk away owing them $800. There are settlement options for stuff like that, but that's not true debt consolidation.

Another problem with debt consolidation is that even if a debtor qualifies and it's a prudent move, it sort of repackages the debt in a way that makes it easy to live with. Unless that debtor has done some soul searching, he or she will probably just go out and make more debt.

For some good general information on debt consolidation, check out www.debt-consolidation-diva.com or look for credit counselors in Google or your local phone book.