One mistake that people often commit is giving up secured debt with loan consolidation for unsecured debt. In loan consolidation process the lender extends loan in your favor so that you can pay off all your outstanding debts. Thereafter you pay one consolidated monthly premium to such lender. In such type of bill consolidation the APR could be very high, even 24%. And when you get a better APR also you are still in debt as you have to pay back the money to the lender who has acted as your savior at the time of your dire financial needs. This is however different from debt consolidation where your bills are reduced to a large extent.  Most of these loans are extended as a home equity loan. In debt consolidation however the credit is secured already while in case of loan consolidation the credit is unsecured. 

Disadvantage of going for unsecured loan is that you may ultimately lose your sweet home. At times adding such stress may not be necessary. You risk your shelter in opting for such unsecured loans. It is therefore better for you to get debt help by way of advice from the professionals who can properly assess your situation and give you appropriate advice on the course of action to be taken. There are enormous possibilities of reducing your payables through the process of debt reduction.