Debt consolidation loans,home equity loans?

me and my wife just bought a house 7 months ago and when we moved in we did not realize how much we needed to get the house adequete with furniture etc. so now we have ran up quite a few credit cards and have a 4000 furniture bill that we are barely getting by paying .so vcan someone tell me how debt consolidation works, and if it will mess your credit up. our house appraised at 92500,while we owe 86000 on it so any advice u give would help . thanks

I would recommend going through a debt counseling/consolidation company (make sure you NEVER pay any fees for this- don't get sucked into those scams). A debt consolidation company usually is able to negotiate a lower APR on the outstanding balance and work out an acceptable monthly payment. You usually cannot apply for any other lines of credit while you're under debt consolidation. You credit report will show the account is in a debt counseling/consolidation plan.

There are technically other options, but due to the low amount of the outstanding bill, debt counseling/consolidation is the most financially sound choice to make.

If you want to repair your credit history by repaying a loan, which has simple terms and low monthly installments, again bad credit debt consolidation loans are for you. They save you after rejection and help you regain your financial credibility, so that you can again enter the mainstream credit market.

Bad credit debt consolidation loans are of two types:

1. Secured bad credit debt consolidation loans:

These types of bad credit debt consolidation loans are secured by a collateral usually some property or a guarantor. Since, the lenders find something to bank upon in case you default on payments, the interest rates on secured bad credit debt consolidation loans are cheaper, the lending amounts are higher and the repayment period can be long.

2. Unsecured bad credit debt consolidation loans:

Persons who do not have anything to offer as the collateral or security, can take unsecured bad credit debt consolidation loans. The lenders find themselves at increasing level of risk while giving such loans. The existing bad credit situation and lack of a collateral, make them charge high interest rates and offer low loan amounts to offset the risk involved. But, a person who has a bad credit and cannot provide a collateral has little choice, but to take these high interest loans. At least by repaying these the borrower can rebuild his credit history.

Deciding which bad credit debt consolidation loan is right for you can be a daunting task. Many companies offer free debt consolidation help to those who are cash strapped. It is good to take such advice because the professional expertise of such companies can help you decide better. Again, it's you who will have to be very cautious about the interest rates, repayment period, late payment penalties and other fine prints that come with the bad credit debt consolidation loans. Following the repayment schedule can help you write off the bad credit ratings from your credit history. Read more from: http://www.credit-card-gallery.com/credit_card_debt_consolidation_loan.html

First of all best wishes for your new home. Please don't mind but you should take into account all the pros and cons before buying a home. NO ISSUES, what have you done but please do take care in future for any long term decisions
Regarding your consolidation issue I can suggest you http://www.abcofdebtconsolidation.com they are offering free quotes and call back services for U.S. residents. You can ask any question to them free of cost and no obligation to buy.
Take care, Have a nice time.

While I do not like debt consolidation, I don't like credit cards and HEL (you tie you short term bills to your house, and can literally lose your house) either. My solution would be the following:
1. Look up www.dave ramsey.com, and listen to his radio program in your area.
2. List your bills: lowest to highest
-while making the minimum on each, put all your extra money and effort into paying off the smallest first; when that is done, add what you were paying on the first into the 2nd smallest bill; as you pay off each bill continue adding the extra amount from the first, and second to the third. Soon, maybe a year, you should be debt free
3. As for the credit cards: start getting rid of them; if you like keep the account open for that credit score, if it is important, but cut them up and only use one; and only use it if you can pay off the balance each month. Why give away your money in high interest. Make an attempt to call customer service in the mean time, and ask for a lower interest rate; do not miss a payment or be late, it only gets worse
4. Make a budget for everything: stop the unnecessary spending right now, take lunch if you have to; cut way back to get that extra money to pay off that list of bills

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