Debt Consolidation Loan

You can contact your bank for a debt consolidation loan, but be careful not to attach your home to credit card debt. It's never a good idea to borrow more money to pay back credit cards, especially if it can cause you to loose your home in the event of default.

If you are considering a debt consolidation service, that is different. A Debt consolidation service can reduce your interest rate on your credit cards/loans, but it does not reduce the principal balance you owe. Debt settlement is another alternative and it does reduce the principal balance of your unsecured/ credit card debt. A reputable debt settlement company will reduce your debt up to 60%. With debt settlement, you make monthly payments towards settling your debts at a payment you can afford until all your debts are settled.