If you have a decent credit rating (preferably a good one) and are currently carrying balances on a number of high interest debts, then debt consolidation is probably a good option for you.

The types of bills you can consolidate depends on what lender you're dealing with, but they usually have one thing in common - high interest rates.

Below are some examples of bills often worth consolidating:

• High-interest credit cards
  Credit card bills are a major offender for most families, and interest rates can usually be cut in half through consolidation.
• Department store cards
  Even worse than "regular" credit cards - department stores frequently charge rates as high as 30%! That a tough interest rate to carry.
• Tax debts
  Uncle Sam likes to charge some pretty excessive interest rates himself to encourage us all to make prompt payments. Interest rates and penalties can vary, but a consolidation loan will invariably cost less.

While the interest rates might not be quite as bad on average, people frequently also opt to consolidate:

• Medical and legal bills.
• Student loans.
• Old service bills.
• Repossessed vehicles.
• Collection agency debts.
• Personal loans.

While saving money on high interest is the main objective in consolidating your bills, there's the added convenience of dealing with fewer creditors each month as well, part of the reason people may opt to include debts even if they're charging reasonable rates.

In addition to what's listed here, there are plenty of other bills that you may want to consolidate if given the opportunity. Whenever you're paying high interest rates, debt consolidation can save you money.

• About Debt Consolidation
• Settlement Versus Consolidation
• The Process of Consolidating

• Consolidating Your Bills
• "Credit Card Consolidation"
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