Consumer debt has a way of piling up in a sneaky way. Many consumers think that they are wisely managing their cash until the day comes when they recognize that they are way too deep in debt. The typical U.S. household has nearly $10,000 in credit card debt, and that debt is often spread among multiple accounts, each of which has its own minimum payment conditions.

As most bank card companies have recently increased their minimum monthly payment requirements to approximately 4% of the unpaid balance, repaying a number of bank card accounts at one time can be difficult. The sum of the minimum payments can be more than many individuals can afford to pay. There is a remedy, though. The answer is called debt consolidation.

Debt consolidation is the process or taking out one loan to repay a number of different loans. By doing that, only one payment need be made each month. Depending on minimum payment requirements for the credit card debt, the single monthly payment could possibly be less than the sum of the prior payments, thus easing the burden of paying off the debt.

But where can you get this kind of loan? While there are companies that market heavily that they can offer these kinds of loans, you may have other sources of funding at your disposal. Several may be worth pursuing, while others may be inadequate choices.

Apply for a home equity loan – If you own a home, and most people do, you might borrow against whatever equity you have accrued during the time you have been living there. Home equity loans are readily available from many lenders at affordable rates of interest. As a bonus, the interest is deductible from your Federal income tax returns on loans of up to $100,000. Be aware, though, that a home equity loan puts your home at risk if you default on your bills.

Retirement plan or 401(K) – If you have a retirement plan or a 401(K) plan where you work, you may have the choice of borrowing against it. The rates of interest are quite favorable, and it may seem like you’re borrowing from yourself. The downside to this is that your money isn’t generating interest throughout the time you have borrowed it, and this lost earning power is lost for good. You can’t make up for interest you did not earn.

Insurance – If you have whole or universal life insurance, you may be able to borrow against it. Talk to your insurance agent for details.

Family and friends – Not usually the ideal choice for a loan, but it may be better than nothing. Just keep in mind that a lot of valuable friendships have been lost over loans. If you plan to borrow from friends or family members, make certain that you can them back in a timely manner.

Most individuals with problem debts will have one or more of these sources of funding readily available if they want or need to consolidate their debts. Before you borrow, be certain to weigh all of your options carefully. The last thing you desire to do while trying to get out of debt is to create the problem worse.