One of the most effective ways of dealing with multiple debts such as credit cards and department store financing is with a debt consolidation loan. In a lot of cases, you'll need to offer some kind of collateral to secure these loans, such as your house or your car.

You can find consolidation loans in a number of places. There are lenders in most large cities - as well as on the internet - that specialize in debt consolidation loans.

Initially, the internet can be quite helpful. There are lots of websites, such as www.debtopedia.com, that have detailed information about debt consolidation. In many cases they will compare different services to help you choose the one that's best for you.

When you consolidate multiple debts into a single consolidation loan, it means you only need to make a single payment every month instead of one to each of the creditors. The interest is almost always lower on these loans as well, so over the time it takes to pay it off you can save a lot of money in interest costs.

When you start looking for a consolidation loan, your credit score is going to have a bearing on what you can get. A lower credit score generally means you'll have to put up collateral to secure the loan, plus you may wind up with a higher interest rate than someone with a better credit score.

Collateral to secure the loan consists of some kind of personal property that is worth enough to cover the value of the loan. So naturally the amount you'll qualify for will depend on what kind of collateral you have to offer.

Once you have your consolidation loan in place, all your current debts will be paid off, leaving you with just the single loan payment to make every month.

At this point the most important thing is to pay that off as quickly as possible, and not charge up more debt on your credit cards.

About the Author, William Blake:

Are you wondering if credit card consolidation is the right way to pay off your credit cards? Visit the Debtopedia website at http://www.debtopedia.com to find out more about it and how to determine if it's the right answer for you. Unbiased reviews.