Consolidating loans with high interest can save you money if you do it right.

If you’re carry a load of debt at high interest rates, consolidating is one way to save money and get out of debt faster. There are two ways to consolidate a loan, either with credit card balance transfers or home equity loans.

Transferring balances from high-interest credit cards to a lower-interest credit card can save hundreds of dollars a month on finance charges without much effort. You must have good credit record as most credit card companies only negotiate credit card interest rates with individuals with good credit history. Those carrying high credit card balances often have low credit scores and cannot qualify for the best rates on credit card balance transfers. in most cases best rates are offered by credit card companies only for a short introductory period.

Those carrying considerable debt may have difficulty using balance transfers to consolidate it all. if you cant use the credit card balance transfer option due to high debt load, a home equity loan may be a more practical option for you. You must have enough equity in your home to cover the outstanding balances. Home equity loans are usually at lower rates than credit cards. So you save additional $$$ on interest rate. If you default on a home equity loan, you could lose your home on the other hand if you default on your credit cards the only thing you lose is your credit record.

If you decide to consolidate your debt, make sure you don't get into the same debt again n those high interest credit cards because you consolidation is not the solution to borrow and spend habits.