A lot of debt consolidation specialists offer home equity loans but do not present these products as such. If you are using your home as a collateral for a loan, you are applying for a home equity loan. This is not a good option unless you are confident about paying this loan back on time.
When looking for debt consolidation services, you don't need to pick those that have giant or constant advertisements. Just because their advertising budget is large doesn't mean that they're a great company. You should probably avoid those companies that email you all of a sudden, too. The good companies usually rely on past clients referrals, so they don't generally need to use flashy, persistent, or spammy advertisements.
Think about which debts you want to consolidate. For example, a loan with an extremely low interest rate should not be included in your debt consolidation. Go through each loan with the lender to make wise decisions.
If you've got a very spotty credit history, understand that the loan rates you'll get from any bank will be relatively poor. You may be denied a loan, or the interest rate that's offered may be extremely high, 20% or more. You may need to look for professional help if this is the case.
Pay off your smallest loans first. Then concentrate on large amounts. Using this technique allows you to quickly get some small bills paid off. Then, you can use the money that you had been paying towards those small bills to help pay off larger loans. This technique works well when you are saddled by a lot of small credit card balances.
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