Debt consolidation is the practice of combining your higher interest debts into one loan with a lower interest rate. This saves you money and simplifies your repayment structure and process. Debt consolidation can help you lower your monthly debt repayments, lower the interest rate on your debt amount, and as you pay down your debt total it can help improve your credit score.
There are various methods for debt consolidation but if you have a home there are some ways that can be worthwhile to explore. These include second mortgage options like a home equity loan or a home equity line of credit, and the option of a mortgage refinance. Because these are secured loans they will have a lower rate than your unsecured debts making them great options for debt consolidation.