The Federal Reserve (federalreserve.gov) says the average American household has $18,000 of debt. This includes money owed to credit cards, personal loans, auto loans- everything except mortgages. Each type of debt probably has a different interest rate and due date. This makes things very complicated for consumers. But it is possible you can get your debt consolidated into one package with a lower interest rate.

According to the Federal Trade Commission, consumers can use a second mortgage or home equity line of credit to combine total debt into one loan - one that probably will have a lower interest rate. Since equity lines use your home as collateral, you most likely can find a lower rate than with your credit card. But this also puts you in more risk. Since a mortgage or equity line is backed by your home, you can lose your property if you miss payments.

Also, any mortgage banking will have some type of fees or charges. These fees can really add up, and might make your consolidation unprofitable. If this is the case, think about working with a credit counselor to improve your financial health. The FTC says credit counselors will help you manage you money, develop a budget and point you towards appropriate resources.

For more information on debt consolidation visit www.bankrate.com, www.ftc.gov or www.debtadvice.org.