If you're in debt crisis, it's time to find a way to digging out of debt. Identifying the problem is the first step to digging out of debt. If your problem is excess debt, you will want to stop using credit. Tight budget and frugality can be a good start to get better finance. If your debt problem is too serious to be solved by a tight budget and frugality, you need find other options. Some people would like to consolidate their debts to solve serious debt problems.
With debt consolidation, you bundle all of your debts together into one new loan, and then pay one monthly amount. By combining balances into one debt, you're better able to pay off the balances without causing financial hardship. Debt consolidation makes sense only if the interest rate on the new debt is lower than the rates on the debts you pay off and if your new monthly debt payment is less than total combined monthly payments on your old debts.