When researching the problem of debt in America, the Internet serves up extremely good quantifiable information. On the subject of debt, there are well over 4 million Internet searches done each month for the term "debt consolidation." There are millions more when you consider the vast number of debt-related search terms one can use. IE: Credit card debt, student debt consolidation loan, non-profit debt consolidation company and so on.

The picture is quite sad and is a reflection of a country with bad money-management skills with a penchant for spending money that isn't there. A check with the US Census Bureau tells us that over 35 million people are living below the poverty line. Then there are the rest of us, averaging household debt to the tune of approximately $12,000 (2005). In fact, total American consumer debt escalated to $2.2 trillion in 2005.

Obviously, you are not alone! There are several ways out of this dilemma and one such way is through debt consolidation offered by government sources as well as debt consolidation companies.

When bad debts result from missed payments or non-payments, it affects your credit record. This is what a lender looks at to determine whether to offer someone a debt consolidation loan as well as the rate of interest. What lenders look for is the borrower's ability to repay the loan. If you are determined to be a low risk borrower, your interest rate will be nominal and you will probably get good terms. If your past credit history reveals negative information, you will end up paying a higher interest rate or you might need to offer some collateral as a guarantee against the loan.

As an example, if you are a homeowner, you can offer your home or any other assets as collateral for the required loan amount as a secured debt consolidation loan. This is a simple way to get your finances back on track. Your many individual debts are then combined into one manageable monthly payment and interest rates are charged on that one amount. From this point on, you no longer have to deal with your past creditors because your lender will be the one dealing with all of them.

There is also a strong possibility that through the use of a secured debt consolidation loan you may benefit from discounted rates as well.

Is A Secured Debt Consolidation Loan The Magic Bullet?

A secured debt consolidation loan is not for everyone. You do not want to consider this option if there is any chance that you might default in your payments. If you do fail to honor your loan Agreement, you could lose your home, car, or any other assets that you have put up as collateral.

To find the best debt consolidation plan you need to do some extensive research. Online research is a great way to go because you can request many free quotes at the same time. This approach alone can save you hundreds if not thousands of dollars in interest rates and penalties.

Whatever you decide, be sure to get off the fence and address your debt problem before it gets out of hand. If you are reading this in the hopes of finding a debt solution, continue your research while you are in the spirit of making a change in your personal finances.Once you hook up with the right company, chances are you will be given some advise on how you can stay out of debt through proper money management techniques.

The key here, as they say, is just to "do it!" After all, you already know the consequences of putting things off for tomorrow.