If you get so many bills that you can't keep track of them, debt and bill consolidation can streamline your payments so you can put more money toward your debt each month. You'll be able to watch your debt decrease in large chunks rather than slowly whittle away.

Three Types of Debt and Bill Consolidation

Depending on your financial situation, there are three types of bill and debt consolidation loans.

Home Equity Loan or Refinance

If you own a home with more than 20% equity and have good credit, you can apply for a home equity loan or take a cash-out refinance loan. In most cases, the interest on the loan is tax-deductible, which will save you more money. You can use the proceeds to pay off your debts. With the home equity loan, you'll have two bills remaining: your mortgage payment and your equity loan payment. Just be careful not to create new debt that adds additional bills to your total.

Personal Bill or Debt Consolidation Loan

If you don't own a home, you can get a personal debt consolidation loan. Some loans are secured against assets like your car, while others are unsecured. The interest is slightly higher than a home loan, but it's certainly less than you pay in credit card interest. Look for a loan with no prepayment penalty so you can pay it off faster as your financial situation improves.

Balance Transfer Loan

If you have multiple credit cards and a few other small debts, you can use a balance transfer offer to combine all your debts onto one low-rate or zero percent interest credit card. Just make sure you can pay off that card before the low rate expires. Some cards return to a very high rate after the offer expires and you may not qualify for another offer from a different bank. When considering a balance transfer, be sure to carefully review the balance transfer fees. If they're more than 3%, look for another offer.

Whichever solution you choose, you'll pay much less interest than you would by keeping your current credit cards at their current rates. Saving on interest is a great way to get out of debt faster.

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