If so, don't even think about using a car title loan (in which you place your car as collateral for the loan) to consolidate your debt.

Not so much because you risk loosing your car (90% of times this will not happen), but because title loan lenders can charge outrageous, triple digits, rates.

Debt consolidation is a form of debt relief that combines multiple debts into one account.

Or, in other words, it uses one loan to pay off multiple loans.

All options have pros and cons, but they can be preferable to continuing to struggle with high interest credit card payments.

The consolidation options available to you will depend on the answers to the following questions: If you are a homeowner, you have the option of taking out a secured loan such as a home equity line of credit (HELOC), home equity loan, or a second mortgage, in which you pledge your home as collateral for the loan.

Because there is no general industry consensus as to what the best options are, we have narrowed down your options.

Many of these options work hand in hand or as part of a larger debt reduction program, but in general, these are your choices: Debt Settlement: Settlement is the process of negotiating with your creditors in hopes of reducing the total amount of debt that you owe them.

Secured debt consolidation involves using an asset, such as a home or vehicle, as “security” for the loan.

While this makes the loan less risky for banks, it’s much more risky for consumers. Because consumers lose the asset if they fail to repay the loan!

If you are struggling to manage your debt but unsure of what steps to take, you can look into solutions offered by loan consolidation companies. Many of these paths negatively affect your credit score, require long-term dedication and obligate you to still pay off the majority of what you owe.