Debt consolidations are an excellent way of working your way out of financial trouble and back into credit health. There are two ways to accomplish debt consolidations: through consolidation loans or debt consolidation companies. Debt consolidation loans can help as long as the loan has a lower interest rate than your other debts and allows you to pay off all the other debts. Often a secured loan, like a second mortgage, is more likely to produce a lower interest rate, however, it may put your home at risk. The other option is a debt consolidation company that may purchase your loans at a lower rate and pass some of those saving on to you as you make your payments to them. Some debt management companies will also negotiate with all of your creditors for reduced rates, collecting a monthly lump sum payment from you which they pass on to your creditors. If this company misses payments, however, your credit score will suffer further damage. You can always fall back on a financial attorney to help you with either of these kinds of debt consolidations, or to file a claim against a debt consolidation company that doesn't fulfill its promises.