The difference between debt consolidation and forgiveness

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Many are turning to debt consolidators to roll our debts into one easy payment. 
 
But how do you know if a consolidation company is one the up and up? 
 
A consolidator negotiates with creditors to lower your interest rates. 
 
The company should deal with paperwork, fees and other hassles.  It sets you up so that you make one simple payment each month. 
 
Consolidators do not lower or wipe out your debts. 
 
Bankrate.com said beware of high fees associated with some debt consolidation companies.  Be sure to check any consolidator’s record at the Better Business Bureau. 
 
Experts said debt settlement companies should be considered only if collectors are hounding you, and you see no other way out. 
 
Debt settlement is similar to foreclosure. 
 
Your credit score can take a major hit if you use this kind of service. 
 
You will owe income tax on any amount forgiven, which can put you back in debt on April 15^th. 
 
You need to check out any company you are considering. 
 
Before you begin the process of dealing with your debt, go to a non-profit debt counseling service like Consumer Credit Counseling Service or Take Charge America.  Both of these companies have good records with the BBB and offer free initial services.  Both will then charge you based on what services they provide.