When you want to consolidate your credit card debts, consider your situation and it is always best done with the help of a non-profit motive credit counselor. It should not be that you opt for a loan consolidation but cannot make the monthly payments after paying off all your daily family and living expenses. You can also reach out and take help of individual creditors to find out whether or not they agree to a lower payment. Sometimes you may get to reduce it or extend the date of monthly due as creditors would want to get paid even less regularly than to lose the entire payment. By Debt Consolidation Loan If you want to take out a debt consolidation loan to pay off your debt you can approach different banks, installment loan lenders and credit unions who offer such loans. This will also simplify how many payments that you have to make to different creditors. You just have to make sure that you do not create any new debt on top of your consolidated debt to further jeopardize your financial situation. Another caution you must take is to know about the hidden costs and time for which the low interest rate is applicable. Add up all current payments including all the interest and fees that you currently pay and compare it with what you have to pay after consolidation. Paying Through Home Equity Loan If you want to use a home equity loan to consolidate credit card debt it might be little bit risky. You may get a credit at a much lower rate of interest if you take loan against equity of your home it actually decreases the net value of your house and could put it at risk in the long run and create more debt. In case you get into trouble repaying it back, you may lose your home if you default on payment of your consolidated loan. Therefore, make sure you know how much you can afford to pay each month before taking such a loan. This is also true for seniors who want to get a reverse mortgage by accessing their home’s equity. Although you can work around it to fit your needs and the purpose for getting one, you have to be well-informed on the risks associated with it still. Consolidation Through Credit Cards When you want credit card consolidation loans you have to consider different options for it while transferring your multiple debt balances into one credit card account. You may come across different credit card companies that offer very low interest or even zero percent balance transfer into one single account and help you in making lower payments. But these offers for a short period of time after which the rate on your new credit card may be higher which would increase your monthly payment. There may also be some balance transfer fees associated with the transfer of debt which generally is a percentage of the amount transferred. You can even check for bill consolidation loan which is a good option in today’s time and is much useful and helpful. Things To Consider Check that the loan which you take to consolidate your debt do not end up costly for you in terms of costs, rising rates and fees than your previous loans. Remember that if you already have problems in your credit score due to the existing debts then you probably will not be able to get a loan at low interest which would have made consolidation worthwhile. A good credit counselor can help you weigh all your options.