Debt to a consumer is like water to a sinking ship. If it's coming in too fast, it really doesn't matter how fast you bail-your ship is going to sink. However, this sad but true predicament can have a happy ending, courtesy of a debt consolidation mortgage, which can rescue your finances like the Coast Guard can rescue you.

Understanding debt consolidation

A debt consolidation loan combines all your outstanding debts into one single loan. You pay interest only on one principal amount, and generally at a lower rate. The bottom line is that you'll have a lower monthly payment, which will help you keep your head above water until your debts are paid off.

Tips for success

Here are some things to consider when thinking about a debt consolidation loan:

Look at your monthly payments. Chances are that you've got a variety of different debts. Maybe a few different credit card balances? A consumer loan or two? There's also a good chance that you're paying double-digit interest rates on those balances. With a debt consolidation loan, you consolidate all those separate payments into one single lump sum, and lower your interest rate into one that's in the single digits.

Budget your expenditures. A surefire way to tell if your ship is taking on water is to make a budget. Is your debt slowly driving you down? Contact a lender and find out how much a debt consolidation loan can reduce your monthly expenditures. If it gets your outflows in line with your monthly income, you know you're in business.

If you think that you're a good candidate for a debt consolidation loan, start checking out your options. Homeowners have plenty of choices, such as a cash-out refinance, a home equity loan, or a home equity line of credit. No matter which instrument you choose, you'll likely find that these loans are the top-notch choices for improving your bottom line and keeping your financial ship afloat.