Here’s the last article in our 3 part series on Debt Consolidation. Hopefully you have found this series to be useful.

Best Things to Do for Debt Consolidation
If you own a home with some equity in it, there are a few options available that are fairly attractive.

Take out a Home Equity Loan. These loans carry a fairly low interest rate and that interest is tax-deductible. Most fixed rate loans are for a 15-year term and also carry an origination fee of anywhere from $75 to a couple of hundred of dollars. The cost of an appraisal and title insurance is also added to this.

“Cash-Out” Refinancing. Another option is to refinance your property for more than the amount you owe and use the extra money to pay off your debt. This is a one-time only option as the interest rates will be much lower but the payments will be over 15 or 30 years.

Refinance Your Car. This is a secured loan and you can borrow against it. The danger is that the car may not last as long as the debt does and it’s hard to buy a new car when you owe more than it’s worth.

Get a Personal Loan. If your credit isn’t too bad, you may be able to get an unsecured loan. The rate will be 11% or more but you’re bound to stay on the lower end of the rate if you use a credit union instead of a bank. It’s still most likely to be less than you’re paying the credit card company.

Negotiate Better Terms. By just calling your credit card company, you can often negotiate lower interest rates.

Another Alternative. You can also seek help from the National Foundation for Credit Counselling (NFCC). They are a non-profit organization that provides free and confidential debt management advice to anybody who needs it. You can consult with them right over the phone.

NFCC also works with creditors so they’ll be eager to work out a repayment plan with you. NFCC is very realistic when speaking to you and you may qualify for their low-rate mortgage program. They also offer financial planning for a small fee.