Have you been under a lot of stress lately? Loan payments seem to be getting more and more difficult? Why don’t you try to consolidate your debts with high interest rates so you don't have to think about paying several loans, but only one, and yet, with a lower interest rate? That way, things will be simplified and payments would be more manageable.

However, it is not always that easy to consolidate your debts. By exploring all possible options, you may proceed with the consolidation of your debts, but remember to do it with caution. To consolidate your debts, you should know and understand the following things.

The first thing to do is check your credit report and review it for any mistakes or possible disputes. Any mistake in the report could hurt your credit score. The credit report can be acquired from major credit reporting agencies or you can get them at no cost from FreeCreditReport.com. All of your debts must be listed in your credit report though.

Second, you should get your credit score. You may obtain your credit score at no cost online. The credit score will show what aspects in your credit are strong and what aspects need some work. The credit score will determine if you have an excellent, good or poor credit standing. If you have a good credit score, applying for a consolidation at a lower interest rate should be easily approved. 

Now, you should list all your debts. You may carefully tally all of the remaining balances or loans that you want to consolidate. Include the important details like interest rates and how much the monthly payments are for those loans. From the list that you made, you will clearly see which loans need to be prioritized to pay and which ones need to be consolidated.

Remember to consider all possible options before proceeding with consolidation. You may just prioritize paying the loans which have higher interest rates as much as you can and make minimum payments on the other loans to reduce the monthly finance charges.

You may also try to negotiate with your credit card company to lower the interest rate. If they won’t give in, you may try applying for a balance transfer to another credit card company with a lower long-term interest rate. You might also want to discuss your problem with your mortgage lender and ask if they can suspend the payment temporarily or if they can accept reduced payments or even extend repayment period.

If after making all considerations and you still decide to proceed with the consolidation, consolidate your debts through a loan from a bank or an online lender. Consider several lending organizations or banks and compare where you can receive the best deal. As soon as you have chosen where to apply for consolidation, you may now proceed with the application. It's best if you could have a second choice where to apply just in case your first choice does not get approved. If they do approve, you can now consolidate and work towards paying off all your debts. If your application is denied, you may appeal or just apply for your second choice.