Many people try debt consolidation, but not all emerge better off.
Some borrowers wind up in worse shape, either because they run up their credit cards again or because their debt remains overwhelming despite the better repayment terms.
We get lots of questions about debt consolidation at and that's because there are so many ways to consolidate debt.
Let's start with the basics: debt consolidation refers to the act of grouping all your different debts into one single debt.
Others succeed because debt consolidation is part of a bigger plan to gain control over their finances.
So the first step in debt consolidation is simply to consider whether it will actually work for you.
There are many ways to consolidate your credit card and other debt, such as with a 0% APR credit card, a home equity loan or a personal loan.
You’ll pay fixed, monthly installments to the lender for a set time period, typically two to five years.For example, say you have three credit cards and decide to use debt consolidation to combine all three into one larger consolidation loan.In that case, the new loan would have a balance equal to the sum of the other loans. You've probably heard of credit card balance transfers, but another option is a personal loan.A bad-credit debt consolidation loan is one way to handle debts that distress you, but a consolidation loan is not your only choice.My answer discusses bad-credit debt consolidation loans and your non-loan options.According to Credit Karma, the average vehicle loan amount is ,504.