If you are like a lot of people, you have several different kinds of debt in your life.  Many people not only have auto loans and mortgages, but also medical bills, a student loan credit cards and others.  Sometimes all these separate payments can become overwhelming.  One way to solve this is to look into consolidation loans.  Often, these loans are used to take several credit cards that have varying interest rates and combine them into one loan.  This way, there is one low rate, and the credit is no longer revolving, meaning that you can’t increase the balance by charging merchandise.  These low interest credit card consolidation loans are widely available through banks and the internet.
 
One thing to be careful of when looking for credit card consolidation is to avoid so-called “debt counseling” companies.  While some of these companies are legitimate and useful to certain people, they are not “consolidation loans.”  What they do is call each of your credit card companies and negotiate a lower interest rate while collecting it all in one lump sum from you.  These companies usually tack on a “service fee” in addition to what is going directly to the credit cards.  The low interest credit cards consolidation loan is just that; a loan to you, which you use to pay off your credit cards (or other debt).  Then you only have that one larger, but lower interest loan to pay off.  If you can qualify for credit consolidation, it is a much better deal because you won’t be paying another company a service fee in addition to interest to pay off your credit cards.
 
Sometimes, people have gotten themselves very deep in debt and have very poor credit scores.  Often, these people are not eligible for credit card consolidation because companies do not want to give them a low interest rate.  The worse the credit score, the greater the risk a company is taking, so they will want to charge a higher credit score.  They will give these people what is often called “Bad Credit Loans.”  These loans function like consolidation loans – that is, they loan you the money which you use to pay off your credit cards and other debt.  However, the interest rate is usually much higher.  Considering that many credit cards can have an interest rate at 27% or even higher, even a bad credit loan can still be a better deal.  Plus, having one monthly payment at the same time will make the debt much easier to handle.
 
Having lots of debt can be overwhelming and scary, but there are always options out there to fix your credit and your life.  Looking into debt consolidation can definitely be an option for you if your credit score is not too damaged and you have many different kinds of debt.