To consolidate your debt, try taking out a personal or signature loan

To consolidate your debt, try taking out a personal or signature loan. This has become a limited option due to the credit crunch, however. Many lenders that used to offer unsecured, signature loans for consolidation do not anymore. If you find one that offers this option, be sure it's not a high-interest loan, even if it helps you lower monthly payments by extending the terms.

Taking a loan to pay down debt may make sense. Speak with loan providers to help get the wheels in motion and determine the interest rate you might qualify for. A car could be used as collateral for your loan. Make sure you pay your loan back on time.

A lot of debt consolidation specialists offer home equity loans but do not present these products as such. If you are using your home as a collateral for a loan, you are applying for a home equity loan. This is not a good option unless you are confident about paying this loan back on time.