If you are a consumer facing financial hardship, but you want to avoid the negative credit impact of solutions like bankruptcy and debt settlement, debt consolidation may be the right answer for you. In debt consolidation, the consumer typically takes out a large loan to pay off a number of smaller credit accounts, loans, and other debts. In the past, it was common for homeowners to use their home equity as collateral in the debt consolidation process, either through a home equity loan or a home equity line of credit (HELOC). In the aftermath of the recent subprime mortgage crisis, however, many mortgage lenders have tightened their criteria for home equity loans and some consumers may encounter difficulty in the process of obtaining the funds for debt consolidation. For an in-depth explanation of the options available to you, call your local non-profit credit-counseling center for a list of debt consolidation counselors in your area.