So you’ve racked up a ton of debt and are paying enough in interest rates to buy your own sports franchise? Don’t worry. Your lack in financial knowledge isn’t your fault. They really don’t teach this stuff in school and you don’t have enough time or money to keep learning it the hard way. The beauty of consolidating your debt is the chance to turn multiple high interest payments into one manageable low interest payment. The following 7 tips should help with the consolidation process.

1. Check your Credit Report first.
Knowing exactly where the problem exists is the first step in solving it. Calculating your total debt, whom you owe money to and where you stand is priority alpha. How will you know how to restructure your finances if you don’t know where you stand?

2. Find a reputable debt consolidation agency.
Not all debt consolidation programs are created equal. Remember that this is a multi-million dollar industry that isn’t going anywhere anytime soon. If you’re not going to hire an attorney to help you, at least shop around before you decide. Consider how long they’ve been in the business, experience, reputation and whether or not they offer low fees.

3. ‘Non-profit’ doesn’t necessarily mean good.
Just because a debt consolidation agency claims to be ‘non-profit’, doesn’t mean you’re getting the most honest deal. Always check with the Better Business Bureau regardless of supposed profit status.

4. Avoid Predatory Lenders.
Swimming with loan sharks is never a good idea. The only thing worse than high interest payments is shady loan sources. Get a good reference before jumping in the deep end.

5. Home Equity Loans vs. Debt Consolidation.
Some debt consolidation programs are nothing more than home equity loans in disguise. Unless you want to live in a cardboard box, don’t put your house on the line.

6. Turn many Credit Cards into ONE.
High interest credit cards are some of the worst culprits behind personal and small business insolvency. Do your best to consolidate all of those cards into one card. Paying over 20% interest means you’re getting ripped off.

7. One lump or two?
Many times, a creditor will accept a lump sum of up to 70% off the original amount depending on how much cash you can scrape together. Try to negotiate this sort of thing as early as possible. With so many defaults in the works, they’ll be glad to get some payment as opposed to nothing.

Our final bit of advice is to relax. Debt consolidation is a very common practice that will help your finances in the long run. You will lower your monthly fees, reduce high interest, wave late fees, stop the harassing phone calls, and eventually become debt free. Even people who’ve declared bankruptcy have a way of bouncing back. Good luck!