If you don't think you're cut out for the Credit Crunch method, there are several options for consolidating your debt. Finance companies make your paperwork easier because they pay off all your debt so you make only one payment each month. The problem is that finance companies charge very high interest rates, so you end up paying a steep price for the convenience of writing fewer checks. Some experts believe that unless your debt problems were caused by job loss, disability, or other major life experience, a debt consolidation loan is just postponing the inevitable: bankruptcy. Many people continue to live beyond their means after paying off debt consolidation loans and end up in the same situation again. For debt consolidation to really make any sense, it's important to change the way you spend money and use credit.

Stay away from consolidation loans unless the interest rate will be significantly lower than what you're currently paying and you're committed to continuing to pay at least as much as you were before consolidating. Other wise you won't be paying off your debt any sooner, it will cost you more in the long run, and you'll soon be back where you were.