Debt is an issue because it is so easy to get into and so difficult to get out of. To put it another way, the deck is set in your creditors’ favor, and every step of the procedure is meant to strip you of as much money as possible. If you put yourself into debt, it’s not your fault, but the good news is that you can get out of it. A debt consolidation loan is one of the first things that comes to mind for most individuals, but it isn’t the only way to merge your debts. Let’s take a look at some of the possibilities you might have.

You may have heard of alternative methods of consolidating your debts, such as debt negotiation and debt settlement. Both of these are brand-new debt consolidation strategies that allow you to bargain with your creditors or settle your debts for less than you owe. This method has the advantage of not requiring you to pay any extra interest or penalties, which can add up to a large amount of money each month. The downside is that it can take months, if not years before you see any reduction in your debts.

What is debt consolidation, exactly? It’s nothing more than consolidating many distinct loans and debts into one single payment. The assumption is that it will be easier to handle and that the total amount you pay back will be less than if you kept all your obligations separate. Credit card balances, personal loans, auto payments, and other financial responsibilities can all be merged. One option is to take out a large loan equal to the whole amount you owe, pay off all your creditors, and then make payments on the single large loan.

Another alternative is to keep all your loans open but deal with a credit counseling organization that will take one payment and distribute it to all your creditors, often on better terms than you have now.

If you decide to join all your debts into one single loan, you might choose to start with a secured loan. Because the loan is backed with some type of security, you will get a better rate. This method relieves the lender of a significant amount of risk, which they pass on to the borrower in the form of lower rates. Those who own a home may be able to get a home equity loan for one of the best debt consolidation options.

You may not own a property or have no assets with which to get a loan. In that scenario, working with a credit counseling agency may be preferable. While they often do not merge your debt, you will still make a single payment, giving the impression that your debt has been consolidated. They’ll work with each of your creditors to improve your repayment conditions. This is a fantastic option because it usually has little, if any, impact on your credit score.

Finally, if you have credit card debt, shifting high-interest balances to lower-rate cards may be your greatest debt consolidation option. But be cautious! To determine whether this is a fair offer, you must read all the fine print. There could be extra fees for each transfer, and the cheap rate may only be available for a limited time. Even so, it might end up being a better deal. Put, don’t make any assumptions.