You do not have to be a homeowner or apply for any loans with this type of debt consolidation. You pay one consistent monthly debt payment to the organization until all creditors are paid in full. Many are non-profit and some charge a monthly fee. However, fees should be minimal so, do your research! If you are not a homeowner this may be the only debt consolidation option available to you.

Beware of unsecured debt consolidation loans that you may be offered. They usually have a variable interest rate based on the prime rate, just as most credit cards are. This means that sometime during the term of the loan you could be paying more interest than you actually are now, based on the economy and prime rate.

Yes, this means cut up the credit cards! Every good debt management program begins with the realization that you have to quit creating debt.

Considering the low mortgage rates available today, this option can save a tremendous amount of money. But, only if you are very disciplined and committed to change old habits! I can't stress this enough.

Lending institutions are very competitive in this area today. Use your resources to find the best possible rate for your circumstances and needs. If you own a home, you can consolidate debt & save