Debt consolidating personal finance

If the first option for managing your debt doesn't appeal to you, you could try taking out a home equity loan.This is a secured loan, also known as a second mortgage, in which your house serves as collateral.If those old student loans are still hanging over you, read the next section to learn about some of the special rules that apply to consolidating them.There's always the possibility of personally settling your debt with your creditors to avoid borrowing yourself out of debt.Many credit card companies advertise 0 percent balance transfer fees -- you can bring over the old credit card debt with no charge.Some people pay off debts by jumping from one low-rate introductory offer to another.Knowing all your options is important before making a major financial decision.

Debt consolidation involves combining multiple unsecured debts into one bill, which can be helpful if you’re overwhelmed by an assortment of monthly payments.Because of the collateral, companies are willing to offer lower interest rates with a secured loan.You'll have to decide whether lower interest rates are worth the risk of losing your home or car.Finance companies are simply companies that offer loans to individuals or businesses.They often are willing to take more risks and lend money to people with lower credit scores.