It happens to a lot of people: you take out too many loans or have too many credit cards and continually use them beyond your ability to keep up with the payments, or worse, you lose your job. Soon you're so far in debt that you have no clue what you're going to do. At this point, it might be time to look into an unsecured credit card consolidation program.

What are these programs and how do the work? Well it's a way to consolidate your bills and get a lower interest rate and hopefully a lower payment, making you life easier, and giving you extra money in your pocket then before.

It's easy to look for what is the easiest way out of a situation, but you shouldn't just jump into a program without understand the nuances of it. You may find yourself in a worse position then you started out in, and that's not a good thing.

The way most of these programs work is to get a home equity loan and pay off all those credit card bills you have built up in the past. One thing you need to understand is a home equity loan uses the collateral of your house as a guarantee to the loan repayment. Which is fine as long as you continue to make the payments and don't let it slide and lose your house, what would be the good of getting those all consolidated but losing your house? Absolutely nothing.

So you want to make sure that you will be able to pay this new loan without any problem. This should be easy right; it's a lower interest rate and all that?

Well you would think so, but it's not always the case you need to find out if you're going to be charged any kinds of fees on your payments. With the addition of fees you may actually be paying a higher payment then you were before you took out the home equity loan. Now that may create a problem because if you couldn't afford the old payments and now you have a payment that's higher how will you be able to continue to keep up? It's a hard position to be in and one that you just need to make sure you know all the ins and outs of the program and what you'll actually be paying before signing on that dotted line.

So if you think an unsecured credit card consolidation is for you just look at all the fine print before signing and maybe getting in deeper.