Credit Card Balance Transfer is one of the common debt consolidation methods. This method helps to reduce your balance with lower interest rates. The other function is that it is also being used to consolidate all your credit card balances from different cards into one single card. This would enable the holder to easier manage their repayments of multiple credit cards. It is always easier to manage one single account, and making sure it is being paid on time, rather than managing multiple credit cards.

Personal Loans method can also be used to consolidate all your debts. Most people uses this method to consolidate higher interest debts such as credit cards, into lower interest debts. There are also people who uses personal loan to receive additional cash on top of consolidating their debts. The benefit of this is that it has a fixed payment over a period of time; giving you time allowance to pay off your debts.

Borrowing against a life insurance policy or retirement/ savings plan through the cash value of the policy is another debt consolation method. The negative side of this method would be a reduction in sum assured, which indirectly lowers your protection that you have built over the years. This could cause you another headache in the future should you need to use your insurance.