If you have a significant amount of debt and you are locked into a high interest rate for your debts you may want to consolidate debt. When you consolidate debt, you combine all of your debt into one lump sum, thereby making it easier to make payments on your debt and providing you with a lower interest rate. There are several debt services available to you that will assist you in consolidating your debt. For example, a non-profit may recommend that you transfer your debt to a low interest credit card, or consider a cash out option or second mortgage on your home. 
Debt consolidation has many benefits. For example, if you consolidate debt, the harassing phone calls and letters from your creditors may cease. In addition, debt consolidation may help you save money by erasing late fees or other expenses. 
 
If you have tried negotiating with your creditors but have had no response, consider contacting a non-profit agency to help you consolidate debt. Many states require non-profit credit counseling agencies to be registered prior to assisting consumers, so check with your state regarding the licensing requirements. Sit down with a credit counselor to review and discuss your financial information. If the credit-counseling agency charges you a fee for a consultation, consider contacting other organizations.
 
First, consider transferring your debt to a zero or low interest credit card to consolidate debt. If you have a lot of debt on several credit cards, this may be a good option for you. However, there may be several issues with transferring your debt to a low interest credit card. Depending on your situation, it may be difficult for you to qualify for a low interest card, especially if you have bad credit. Or, you may only be able to move debt from your high interest cards to a low interest credit card, thus not consolidating all of your debt. In addition, the new credit card may charge you a balance transfer fee and only provide the low interest rate for a specific period of time, like one year. However, if you are able to repay your debt within that time, this may be a good debt consolidation option for you.
 
If you own a home and have significant equity in the home, a credit counselor may recommend that you consider doing a cash out refinance or applying for a second mortgage. A cash out refinance involves refinancing your home and taking out a portion of your home’s equity to use to repay your debt. In addition, applying for a second mortgage on your home may be a viable option for you. A second mortgage is a subordinate mortgage to your original home mortgage, and will not change your first mortgage’s terms. If you qualify for a second mortgage you may be able to lower the interest rate on your debt and you may even receive for a tax deduction because the interest will be combined with your home mortgage. However, be careful of predatory lenders that offer you more for a cash out refinance than your home is worth. In addition, if you plan to sell your home in the future, this may not be the best option for you in terms of debt consolidation.
 
Debt consolidation can be a confusing process, with many options to choose from. Therefore, to learn more about dealing with debt, visit www.ftc.gov/MoneyMatters. In addition, if you have questions regarding your rights in terms of debt collection, visit http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm.