Many people think a quite a bit about debt consolidation for some time before they decide to do anything about it, and this delay is to a great extend because they only have a slight knowledge of what debt consolidation really is.

If we consider the two words used in this expression we can gleam what these words debt consolidation do in fact mean. The first word which is debt suggests that we are talking about something like credit which is when we owe money in some shape or form. The second word is obviously the combining of several bits and pieces in to one.

When putting the exlpanation of these two words which form the expression, debt consolidation, together it becomes apparent that it is the combining of several items of credit or loans into the one unit.

The debt concerned will be normally in the shape of credit card debts, personal loans, and hire purchase agreements.

It is only too easy to fall into debt and before we know it we are wondering what on earth happened to put us in this position of juggling with too many debts and what we can do to get out of the situation. Well these days it is all too easy to take on too many debts as we are constantly surrounded by adverts crying out at us to buy a new kitchen, a new conservatory, and other nice things for our homes.

Home improvement loans to fund these improvements, if arranged through the home improvement company, come with an interest rate of around 25%.

Then there are the glossy magazines full of advertisements for expensive designer clothes that we feel we must have and credit cards are used for this kind of purchase. Credit card debts can soon mount up with their rates of interest normally no less than 20% to up to 40% or even more.

The credit cards are also used to pay for the delicious meals in the local Italian, French, Chinese and Indian restaurants, and if several visits a month are made to these eating houses the bill comes to thousands of pounds each year.

The credit cards are also used to pay for the several weekends away each year and for the hire of the expensive car to take you to the luxury spa hotels where you spend these special times away with your loved one

Most people also have one if not two hire purchase agreements for a car.

Therefore when you think about it the reason you are laboring under the burden of too many debts becomes apparent with the credit cards being the worst offenders with their excessive interest rates.

Now you understand why your debts have reached such a level it is time to grab the bull by the horns and do something to resolve the situation and this is best done by debt consolidation loans which perform the task of rolling all the debts into one lower monthly payment.

The best way to organize this debt consolidation is by considering either secured loans or remortgages which take the place of all the debts and replaces them with one much lower repayment each month.

Remortgages at present have interest rates starting from only 1.84% and secured loans have rates commencing at from about 9%

When these low remortgages and secured loans are compared to the high interest home improvement loans and credit cards it must be clear that not only will there be a big saving but that financial life will become easier.