There are many debt settlement companies, and if the consumer is willing to work with such companies, he needs lump cash or, he need to build up high funds over pre-determined time period. Once the building up of funds is done, the negotiation process can begin with the respective creditors. Debt consolidation originates from a number of unsecured loans, but it’s a different ball game when it comes to the collateral cases. It involves a secured loan, instead of the unsecured loan, against an asset that serves the collateral property, which is house most of the times. In such cases, mortgage is secured against the house. The process of collateralization is considered so often, because it involves minimum risk. Debt consolidation is also known as credit counseling, these are payment schemes typically offered by those agencies that look to lower your percentage of interest rates and make you debt free in a maximum short span of time. The very beginning step of the unsecured debt consolidation will be the budget analysis done by the counselor and he predicts for the better. All you have to do is fill a form and prepare yourself for the useful suggestions offered by the consultant.