A debt consolidation loan may be one way to help you reduce your debt load and more quickly repair your credit.
Typically, a debt consolidation loan will combine several loans into just one giving you just one monthly payment. Often this monthly payment is less than the combined monthly payments on the loans before the consolidation.
Banks offer both secured consolidation loans and unsecured consolidation loans. A secured consolidation loan is usually like a home equity or second mortgage on a home. With the declining real estate prices across the United States, these loans are much more rare and difficult to come by.
However, you may still have options. Consult your banking institution and make sure to shop around if this is an option that you choose.