When people can no longer cope with increasing levels of personal debt, often accrued over time by using several credit cards, one of the best ways to get out of this situation is by consolidating all of their existing debts into one monthly affordable sum. Usually, this is in the form of a lower costing loan. However, this is not always the best solution and, as with all financial matters, the most appropriate solution needs to be weighed up carefully against a person's own individual circumstances.

Depending on the level of debt which a person has accrued, sometimes it can be more productive to look to sell off other assets first before taking out a loan and to pay off the debts that way. Things like selling a car, for example or even considering ?downsizing? your home might be viable options, i.e. selling your home and moving to a smaller place will release additional capital that can be used to pay off debts.

It may be that you're only making the minimum payments on your credit cards and can afford to pay off a bit more each month. If so, it makes sense to do that as the money you will save in the long term will lessen the impact of the credit card APR which will far outweigh the level of the rate of interest you will receive if you have any spare cash languishing in a savings account.

If your debts aren't too extortionate, it might be possible to consolidate them by moving them to a different credit card which has an introductory 0% APR offer. This isn't always possible but it if it is feasible, then you will save more money over even a traditional consolidation loan if you can then pay your other cards off within the time span of the introductory offer.

A secured loan or remortgage is another alternative you might wish to consider. These tend to be granted more freely and come with more favourable interest rates than with an unsecured loan and are available to homeowners.

The key aspect of debt consolidation is to consider all your options carefully first of all. Go to a different range of lenders or let a broker do all the work for you. They will be able to look at your individual circumstances and work out the best solution that suits you individually. As they make their money as a result of commissions they receive if you opt to take any of the solutions offered, a reputable broker won't cost you a penny.