Dealing with too much debt can lead to a great deal of anxiety and stress. If you can barely cover the minimum payments on all your credit cards and other bills every month, a debt consolidation loan may be a good way to get on top of things. There are several things you need to consider first, however.

A debt consolidation loan is a loan for the total amount of your outstanding debt including car loans, credit cards, etc. The loan will be used to repay the debts. The result will be that you have a single monthly payment at a lower interest rate.

Before looking into a consolidation loan, there are some other options that may help as well.

1. Ask For A Lower Interest Rate

Credit cards tend to have the highest interest rates of most debt, but quite often it is as simple as calling and asking them for a lower rate. There are plenty of competing credit card companies just itching for your business and if you call the one you already deal with and ask them to match someone else's rate, 9 times out of 10 they will do so.

2. Manage Your Debt More Effectively

Rather than applying for a loan, learning to successfully manage debt through free information available on the internet may be the way to go. Also, check with your town offices for organizations that help with debt management.

3. Bank Loans

If most of your debt is on credit cards, you may only need to consolidate that debt into a single loan. Your bank may be able to offer you a better rate on a smaller consolidation loan to cover your credit cards, while leaving any other debts where they currently are.

Consolidation of debts can efficiently save you money and decrease the monthly stress of locating money for multiple payments. If you're dealing with unmanageable debt, this may be the solution for you.