The concept of debt consolidation is to take all the debt that you currently have and make it into one debt
. The point of this is to enable you to secure a lower interest rate and to have one repayment only. The purpose is also to reduce your periodic repayment amount.
One would normally consolidate store card and credit card debt. Credit card debt generally carries very high interest charges. There are advantages and disadvantages to acquiring this type of loan. The one main disadvantage is the extension of the loan term which means that the original loan amount could increase.
You will have two choices if you own a home. You could apply for a home equity loan to pay off all your other debt. Home equity loans generally have a lower interest rate than other loans.
Another option if you own property is to refinance your property for more than you owe. This will enable you to pay off all your other debts. The advantage to using these two strategies is that your repayments will be lower as the term of the debt will be longer and the interest charge lower.
You could apply for a personal loan. If your credit score is good, you should be able to acquire an unsecured loan. Private lenders will generally offer you a better interest rate than the banks will. There is the option to refinance your vehicle, if you own one. This is not a good choice though as the short life span of a vehicle does not make it viable.
You could also negotiate new terms with your lenders. Contact them to discuss a better interest rate on your debt. If you apply for a lower interest charge loan, your periodic payments will lessen. Rather than spend the saving you gain on the repayment, you should pay it into the loan. This will enable you to save on the final interest amount and it will also shorten the loan repayment period.