Debt Consolidation

If you are having trouble paying off your debt, but can still manage payments, consolidating your debt into one lower payment can help. If have good credit and own a home you can apply for a home equity line of credit. This type of consolidation can incure some fees such as "points". There are possible tax advantages that can lower the overall cost of borrowing the money. When you get a home equity line of credit or second mortgage you are putting your home up as collateral. Beware that you could lose your home if you default on the loan.

Finding help through a business that offers debt consolidation loans is an option if you can't get a home equity loan or don't own a home. Be cautious and avoid advance fee loan guarantees. Companies cannot legally accept payment and guarantee you a loan until after you are approved. Some companies will charge an application fee to cover administrative costs. This does not guarantee your loan. It helps to shop around and ask about all fees involved and interest terms as they vary widely.