When it comes to getting advice, there are some great debt consolidation resources and some not-so-great ones. The Web is full of information regarding loans, money management, credit, and debt consolidation. There is a great tool, like a loan calculator that allows comparison of several existing loans and a consolidation loan. When using the Web, inquiries should not reveal personal information like account numbers or social security numbers. If your source of knowledge asks for this sort of information, best to find another resource.
One great area for debt consolidation resources is on government Web sites. Places like the Federal Trade Commission offer unbiased information and advice for credit counseling and other money issues. You could also find resources and people to talk to at your own bank. Your own bank might offer good advice on debt problems, but the quality and cost of a solution will vary. You should compare the services and costs at many financial institutions and be cautious of scams on the Web.
You should make sure that you get your debt consolidation resources from reputable, well-established companies. Consider factors that might affect future income and debt. If the amount of debt is such that bankruptcy is a possibility, seek financial counseling. Counselors can offer sound advice and a plan to prevent disaster. As always in financial issues, choose a financial counselor carefully. Check credentials and experience.
Debt consolidation is one way to get out from under mounting credit card and other debt, but the ultimate solution is to avoid bad money management habits that created the crisis. Consolidation of debt doesnt mean lower total debt, but may make it easier to handle. Private loans or second mortgages are possible avenues to look at, but be really careful about borrowing large amounts of cash on the equity in a home. The Web is a great place for research and a great place for scams. Investigate all possible places of help and think about financial counseling if things are really dire.