There are a large range of experiences with debt consolidation ranging from the simple and successful, to horrifying accounts of financial ruin. As usual, the truth is something in between these extremes depending on your individual situation, debt consolidation could potentially be a good way to decrease your debt. However, the value of debt consolidation programs can vary based on many factors, such as the amount you owe, your earnings and the types of debt you have. "How successful your debt consolidation program is" depends on your debt perception, your general thoughts about money. You need to keep the dos and don'ts in mind when considering consolidation.

Your first step in debt consolidation is to locate a qualified professional debt adviser -- someone who will acquaint you with many options, and not just push the product they are selling. It may be that you don't need a product at all -- just a profound understanding of your attitude toward debt and your spending habits, along with professional advice and help with budgeting. An important decision to make regarding your debt consolidation is how long you want the repayment period to run: lower monthly payments will mean a longer repayment period and increased interest. If you only lower your payments without bothering to change your spending habits, your debt will continue to grow.

Is a loan or a mortgage better for you, in handling your debt consolidation? In spite of the fact that you may receive a smaller Annual Percentage Rate if you went with a mortgage, also, more time to pay loans, your home could be at risk.

If you can no longer handle the payments, you need to consult a credit advisor to learn what you can do differently. Do you need a professional debt solution? Everyone's situation is different and not every situation is applicable to every person. As such, a debt advisor can be quite helpful in choosing the right one.

Don't charge the debt consolidation loan you have taken to credit cards, store cards or overdraft accounts. Consolidation can create the temptation to add to an already serious situation if you charge on those accounts while you are paying off your older debts with the consolidation loan. You may wish to keep one credit card for emergencies, but not without first analyzing your spending habits because if you continue to pile new debts on top of the old, you will just keep widening the hole you were trying to get out of. Your debt now is a direct result of what things that you used to to? Since to goal of debt consolidation is to enable you to pay off your old debt without encumbering yourself with new ones, it's important to make sure you understand how you got in trouble in the first place, and how to avoid it in the future.