The way this program works without debt consolidation loans is that a debt consolidation loan professional will contact your creditors to get your interest rate and monthly payments reduced to an amount that you can afford to pay. Many debt consolidators already have working relationship with these creditors and will know exactly how to get the best deal for you. For example, if you have a $5,000 debt with MBNA at 21% interest, a debt consolidator will likely be able to get MBNA to lower your interest rate and monthly payments significantly.
Typically, a good debt consolidation company can lower your monthly payments by 50%. In some cases, they can even eliminate interest charges altogether. This way your entire monthly payment will be toward the principal.
In addition, you no longer pay your creditors directly. All of your debts are organized into one manageable and reduced payment to the consolidation company. The consolidation company in turn pays your creditors on your behalf.