When you are drowning in an ocean of debts and collection agents are making your life hell, it is obvious to be tempted to borrow a huge amount from an "easily available source" and pay off all the debts in one lump sum. This is what majority of the people think when they consider debt consolidation - consolidating all the debts into a single debt and making a single monthly payment. If this is what consolidation of debts means to you as well, it can undoubtedly be very dangerous, as you are still in debt and you may even end up in a bigger financial trouble than ever before. So, it is actually just an "easy temporary fix" to your problem. The best alternative is to pay off your debts bit by bit - and, this is what debt consolidation actually implies. It is basically about making the right moves. Let's go exploring.

The Worst Financial Moves

Some of the worst financial moves that people tend to make in order to pay off all their debts include borrowing from 401(k), using a home equity loan, and transferring all the credit card balances to another credit card. Let's take, for an example, home equity loan. First, it is very hard to find such a loan at a desired low rate. Second, even if you get a low rate loan, if you are not disciplined enough, you may risk losing your home. In comparison to this, borrowing from 401(k) sounds a better option, but when you get closer to retirement, you will deeply regret this option. The worst of all is the credit-card balance transfer game. It

is nothing but high-stake gambling that will only land you in a downward financial spiral.

So, What To Do?

Very few things in the world can be as painful and frustrating as having debt collectors knocking at your door. This is what causes the panic that forces you to make the wrong money move. So, first of all, don't panic. Know your rights.

• If you are unable to pay your debts, you are not going to be arrested for that. So, don't buy it when they threaten you in this manner.
• It is a criminal activity to oppress, harass, or abuse someone. So, if debt collectors are doing it, you must know this is not their legal right.
• Sometimes, debt collectors pretend to be government representatives and they talk to you as if you have committed a crime. Always remember that the inability to pay the debts because of genuine reasons is not considered as a crime. Moreover, debt collectors are not government representatives.

Now, once you know your rights, the next step is to get help from experts. When nothing seems to work, organizations like "National Foundation for Credit Counseling" may prove to be a great help. There are several non-profit organizations that can help you negotiate with your creditors and find an affordable solution for you. But, please note that the best organizations are the ones that get paid by the creditors.

"debt consolidation" is the best place to find information about those truly non-profit organizations. It is the most comprehensive online resource on dealing with debts that will let you know how to make the right financial moves at the right time. Once you do it, you won't find debt consolidation a dangerous venture rather you will find it something that will pay you some big dividends down the road.