The average American is struggling under the weight of $6,375 in credit card debt. If you are dealing with massive credit card debt, mounting medical bills, or other types of debt and cannot see a light at the end of the tunnel, chances are you're looking for any way to find relief. For many, debt consolidation is the answer to a fresh financial start.

If you're considering debt consolidation, here are a few dos and don'ts to keep in mind.

Do Consider Every Option Before Deciding on Debt Consolidation

There are several options available for individuals struggling with debt. In addition to debt consolidation, which involves securing a low-interest loan to pay back your high-interest debt, there are other options available, including:

Work with each lender individually. If you can no longer manage your debt, but you only work with a handful of lenders, consider working with each one individually to settle your outstanding debts. The companies may offer a temporary reduction in interest rates or provide you with more time to pay off your debt.

Debt settlement. This involves hiring a debt settlement company that negotiates with your lenders to lower your debt. Do your homework to ensure any debt settlement company you choose is reputable.

Credit counseling. A counselor will work with you and your lenders to create a payment plan. This is a good option, but it can take several years to resolve your debt.

For many debtors, Chapter 13 or Chapter 7 bankruptcy is the best option. Chapter 13 allows you to create a payment plan and keep most of your belongings, and it takes either three or five years. Chapter 7 is liquidation bankruptcy. There are income requirements to qualify for this type of debt relief.

Contact an attorney to determine if Chapter 13 or Chapter 7 bankruptcy is the right choice for you.

Do Learn More About How Debt Impacts Your Credit

No matter what type of debt relief plan you choose, it's important to learn about your credit, how debt impacts your credit, and why you accumulated so much debt. A credit counseling service can help you understand how credit scores are calculated and the impact of debt-to-income ratio.

Take a hard look at your finances during this period to determine why you went into debt in the first place and what you need to do to ensure you don't accumulate unnecessary debt in the future.

Don't Go Through the Process Alone

Credit consolidation is a tricky process, and if you aren't careful, you might wind up securing a loan that will cost you more in interest than if you paid off each of your other debts individually. A debt consolidation attorney can help you understand the process, if debt consolidation is truly the right choice for you, how to begin the process, and what to look for in a new lender.

For example, depending on your income, credit score, and the amount of your debt, a bank might offer you an unsecured or a secured loan. A secured consolidation loan requires you to put up collateral against the loan, such as your home. These are often more difficult to secure but you will typically pay less interest with this type of loan.

An unsecured loan doesn't require collateral and is often easier to obtain.  However, you might pay a higher interest rate, which might not make sense, especially if the loan's interest rate is comparable to the interest rates you are paying now on your outstanding debts. An attorney can help you determine which type of loan is best for you and how to secure a loan with a fair interest rate.

For many people struggling with debt, debt consolidation is the best option. If you have any more questions, contact a debt consolidation attorney, such as James Alan Poe, P.A., for more information.