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The best and easiest way to reduce or eliminate debt instantly is to take advantage of debt consolidation programs. Such programs can come in the form of loans, second mortgages or debt counseling services. Most people use a combination of programs to solve their debt problems rather than rely on one program to alleviate their entire debt burden.

Before we discuss how to get started, let’s take a moment to look at each type of program in more detail:

* Credit Debt Consolidation Loans – Debt consolidation loans are low-interest loans that can be obtained through most lenders. You must meet certain requirements to qualify including minimum amount of debt, acceptable credit history, acceptable debt to income ratio and adequate capital. If the lender approves the loan, the lender disperses payment to the creditors and holds all freed titles.

* Second Mortgage – Another option is to refinance your mortgage and/or take out a second mortgage. These loans are obtained by using the equity in your home as collateral. The money is paid to you, and you have to pay off your creditors. All titles freed during this method of debt consolidation are yours to keep.

* Debt Counseling – Debt counseling services do not lend you any money. They merely negotiate with your creditors to secure lower rates. Then, they help you set up a realistic budget. You make one payment to your counseling service each month, and they pay your creditors.

Now that you know the different methods of credit debt consolidation, it’s time to get started. You will need to follow the same steps regardless of which method you choose.

* First, you need to gather up all of your bills. You will need all of the contact info for your creditors along with account numbers, balances owed and payment amounts. Do not forget to include anything.

* You will also need to supply proof of income. Be sure to include all forms of income including employment, disability, unemployment, child support, welfare, investment returns, etc.

* It is a good idea to pull your credit report as well. Banks and lenders will pull your credit report themselves, but you will need to supply one if you go the debt counseling route. It is also a good idea to know what is on your report before you begin the consolidation process.

* Research your options and pay special attention to interest rates and deals that are currently available. Right now there are numerous government programs that are making it easier and cheaper for families to consolidate debt.

* Make an appointment to learn more information before you proceed.

Once you have a clear idea of which option you would like to pursue, you need to find out all you can about it. Do not become blindly locked into a course of action. A better alternative may present itself. If it does, do not hesitate to take advantage of it.

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