Consumers should be particularly wary of consolidation loans that offer lower payments but higher interest rates than you’re already paying. Some companies offering loans for debt consolidation say they will assist you by reducing your monthly payments, but then they charge you a higher overall interest rate than your existing loans or credit cards, and stretch your payments over a longer period of time.

Be watchful when making credit card balance transfers. In today’s market, many credit card companies are offering debt consolidation help via a balance transfer option. What they are basically doing, though is that the card company are giving you a lower rate provided you transfer balances from other higher-rate credit cards to your new account.

Another tip is to see if you can locate a secured loan. If you require debt consolidation assistance, you might find your best friend to be your own home. Home equity loans nearly always let you have lower interest rates than other types of loans that are granted without collateral, because the lender is accepting reduced risk. Also, if you have a later model automobile, truck or SUV that has a low remaining loan balance or is paid off completely, you could also consider asking for debt consolidation help through auto refinancing. Most often loans secured by a vehicles will also offer a lower rate than other types of unsecured loans.

One final thing you ought to watch out for are long-term high rate consolidation loans. Be especially careful if you are approached with an offer for low-rate credit card balance transfers, and think about the possibility of making use of the equity in your home or motor vehicle.