Monthly expenses like credit cards often have hefty carrying costs associated with them. It's not uncommon for people to have thousands of dollars in balances at interest rates averaging as high as 20%; which makes it easy to get caught in a cycle of paying monthly minimums and nothing more.

While there are some variations on how it's done - a debt consolidation loan basically allows a person to take their high interest debt and move the balance over to a new loan at a better interest rate. The lower interest rate means less is wasted on interest, and more money can be spent on paying down the principle owed.

How Do I Get Started? Consolidating your bills isn't a difficult process, though it should be noted that to qualify for a new debt consolidation loan you'll generally need to have a respectable credit rating, and often some security to offer as well. If you don't have the best credit score or adequate security to offer you may still qualify, but you won't be able to secure the same low rates as someone who's considered less of a financial risk. In a nutshell, the more appealing you are as a borrower to whoever will be providing the consolidation loan, the more you'll be able to save.

Visit CareOne Credit Counseling

If you don't qualify for a consolidation loan or the rates offered simply aren't low enough, you might consider a debt management program that includes settlement as an alternative option. Debt negotiation/settlement is a different approach than consolidating - but ultimately works towards the same objective.

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

• Consolidating Your Bills
• "Credit Card Consolidation"
• Unsecured Loans
• Secured Loans

• Financial Management Tips
• Other Sites
• Debt Consolidation Loans - Home