Why do you want to consider debt consolidation to help you out?

Why do you want to consider debt consolidation to help you out? If it is only to reduce your payments so that you have more money to spend on discretionary things, such as entertainment or going out to eat, you are making a huge mistake. This method is only for those who are intent on paying down debt.

With the current low home mortgage interest rates, you may be able to refinance your home and take out some of the equity. Be careful to avoid borrowing as much as possible on your new mortgage. If home values should drop even more, you may end up owning a home that is less than the amount you owe on it.

Take advantage of zero percent credit card offers by transferring higher rate balances onto them. Even though there will likely be a 4 or 5 percent transfer fee, the total amount will be less than the interest rate you would pay on your current balance on the higher rate credit cards.