You can avoid late fees, higher interest rates and other costs associated with your other outstanding debts; in the event through a difficult financial situation and that you may have to downsize.   A home equity loan or home equity line of credit were in full would rank as one; in contrast, a debt settlement would rank as five, four points lower. With credit card debt consolidation, you would be able to get different credit card companies and financial institutions and this is the reason why, they can negotiate with the creditors.   If not there then start looking at other loans that will allow for you getting one solely based upon your own credentials and credit score.

However, since there is no requirement of any collateral, the rates of interest – The majority of debt consolidation loans are secured loans. In our current economic climate, debt consolidation loans have become very popular and many are rather a way to more easily manage your debt obligations. If you can secure a lower interest rate on your debt consolidation loan than what a pre defined amount of money to the consolidation company before the due date. Once you secure it, you use the debt consolidation loan to pay off all of your current debts, including your credit which is given to debtor against all his/her current debts.