Moaney - Really Control Debt money

He said there are a few ways you can combine your debt.

Mostly, consolidation means the debtor will opt for a loan that will pay off all of their debts but will have a much lower interest rate. You’ll need to decide whether you want to move your debt to a secured or unsecured loan. Unsecured means that the credit isn’t based on any collateral other than your creditscore. Things like payday loans and credit cards fall under unsecured debt. Secured debt covers things like home equity loans and car loans.

A secured loan on home equity "is usually a win-win for a lot of people. It’s easier to pay off, but the margin is longer," said Tim Dwyer, with U.S. Bank. He said it’s a great option, but with the current housing market, it may be quite difficult to refinance your home -- especially if you owe more than your home is worth. Another danger is that if you let your debt get out of hand again, that money is tied to your home. If you end up defaulting, you could wind up losing the property.

"An unsecured loan is basically an upgrade to a lower interest rate," said Dwyer.

He said keeping the debt unsecured is a good option for money past-due utility bills and several small loans. The downside is that debtors will need a credit score of about 680 or more.

The final option is going through a company that sells debt consolidation as a product. The company will work to attack the debt from all sides -- getting a lower rate from creditors and finding a new, lower interest loan. These companies, however, will charge a fee based on the amount they save you -- usually hundreds of dollars -- and since it is a major change in your debt, it can hurt your credit score significantly and should be thought of as a last option before bankruptcy.

So, where does the absorbed debt go if you do choose to consolidate?

Davis said the creditor, instead of risking a complete default, "loses money when you cannot afford to pay more towards monthly payment." He said if debtors are seeking a major consolidation, it means they’re close to just not paying the bills. In that situation, creditors will go a long way to break even before losing money.

In the end, you should only really use any debt consolidation program if you cannot make your monthly payments, but haven’t yet taken a big credit hit from missing payments. You should think of it as another money. Experts said that even if you proceed with a debt consolidation money  yourself deeper into debt if you don’t get control of your spending.

But, as money payments without many problems money.