However, there are specific instruments called debt consolidation loans, offered by creditors as part of a plan to borrowers who have difficulty managing the number or size of their outstanding debts.
A better option may be to find a reputable non-profit credit counseling company near you that can enroll you in a debt management plan.
They can help you negotiate terms with your creditors and assist you with making sure payments continue to be made on time during any changes made to your payment schedule.
There are also several consolidation options available from the federal government for those with student loans.
Theoretically, any use of one form of financing to pay off other debts is practicing debt consolidation.
Consumers can use debt consolidation as a tool to deal with student loan debt, credit card debt and other types of debt.
There are several ways consumers can lump debts into a single payment.
This allows the debtor to make a single regular payment, rather than several smaller ones.
If the interest rate on the new loan is lower than that on the previous ones, this can save the debtor money on his or her monthly payments.
So the question remains, what do you do when you find yourself in a mountain of credit card debt?
One solution to your financial problems that you may want to consider is credit card consolidation.
Debt consolidation means taking out a new loan to pay off a number of liabilities and consumer debts, generally unsecured ones.