When looking into debt management consolidation you will be able to take all of your outstanding debts and place them under one umbrella. There are many reasons people get into the situation where this is necessary. But what happens to you during this process and after.
First you will use a company to get the process started. They will go through credit counseling where they will start negotiating with your creditors. This process can take up to three years. This is because there is a negotiation going on between your team and the creditors. Fortunately you are kept up to date on this process but usually not directly involved. Through credit counseling you are negotiating lower rate and any other terms that were discussed with the debt management company.
Once the discussion phase is done you will have an unsecured debt that you need to pay off. As this process is being done you will have a hit on your credit score. The hit will be far less than it would be though if you had to file for bankruptcy. Now you have payments that will be within in your budget and you can begin rebuilding your credit. Your credit will be salvageable and now you have a clear strategy.