The first thing you need to do if you are under a mountain of debt and are not able to make timely payments that do more than cover interest is cut up all your credit cards. Do not take on more debt until the debt you have is paid. Address what you can fix on your own and then look for help. Debt consolidation may be the answer you need for getting out from under high interest and multiple bills.

Be cautious when choosing debt consolidation. There are a variety of ways to consolidate debt so be sure to choose the one that suits your needs. If you are a homeowner and have enough equity in your home to cover your debts, look into a home equity loan that has a lower interest rate than what you are currently paying.

If a home equity loan is not possible for you, there are debt consolidation companies that offer other ways of consolidating and settling debt. Companies with good reputations are often able to mediate between you and your creditors. By doing so, they may get interest rates lowered and even be able to help you settle for less than you owe. The rest of the debt is then lumped into one by either an unsecured loan or an offer to distribute payments for you. The interest is usually lowered and the payment is lower than you were paying when dealing with them all on your own. They do charge a fee for their services and it is added to your monthly payment.

Don't pick a debt consolidation company too quickly. Look into the backgrounds of several of them by checking with consumer agencies such as the Better Business Bureau and by talking to people who have used the companies you are considering. When you find one that looks reputable, call them and ask for details on how they work and exactly what they charge. A company that offers debt counseling is your best option. These services are invaluable when it comes to getting out of debt fast and staying out from under debt for the rest of your life.

If you have done all you can and debt consolidation is not a viable option for you, then you might consider bankruptcy. Don't go that far unless you have exhausted every other avenue. Debt consolidation can be a very good thing if you choose the company wisely.