Since the lenders money is secured by a mortgage, the interest rate will be lower than the rates of most other consumer debt. Credit cards, for instance, are unsecured loans and typically have much higher interest rates.

Since the interest rate is lower and because you have one payment instead of many, the amount of your monthly bill will be significantly less.

The average citizen in the U.S. pays 11 different creditors every month. With a consolidated loan, you only have one creditor and one check to write each month; which makes controlling your finances much easier.

The process of consolidating your debts is very simple and straightforward. You simply contact several lenders and tell them that you’re interested in a consolidation loan.

Negotiate with at least four lenders. Make them compete for your business by letting them know that you’re shopping for the best deal. Ask each lender to lower the points, fees or the interest rate. And ask each to meet — or beat — the terms of the other lenders.

Financial contracts can be very confusing. Before signing yourself to a major long term commitment; have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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