It's surprising, though maybe it shouldn't be, how many people that are troubled by debt problems, don't without doubt understand how much monthly interest they're paying. Part of the dilemma can possibly be that they really do not want to accept their situation. Because of the amount it may be, one can hardly blame them.

Steps to finding your best debt consolidation solution:

The initial action back to financial normality is a balanced study. If you're paying $400 per month in interest charges alone on a monthly net income, say, of $8,000, then you are paying 5% per monthly cycle of your wage for essentially nothing. It's not entirely nothing, since you are enjoying the things you bought early. You would have had to save to obtain them outright. But is that worth the 5% of your remuneration?

When that $400 a month, which for the majority, is much more, becomes the total you can pay each month, you have reached a point where you will in no way pay off the debt. If all the money is going to interest none is going to principle. That can possibly be an extreme illustration, but consider how much of the monthly payment in your circumstances goes for interest versus repayment of principle.

Presume it's 95% interest, 5% principle. That's approximately the illustration for the average home loan for the initial years. You can use an online calculator to see how long that will take in your situation.

Now that you've seen your position, you need to do two further thing. Develop a budget that will help you to make the payments as large as you can achieve to get the bills paid off. You could use the 'snowball method' and pay off the lowest one first. Then apply what you were paying to the smallest to the next smallest (now the smallest), until you've reached the end.

Alternatively you could pay down the largest bill. That would save you the most in interest charges, but it's hard for many people to stick to it, when they see such slow progress.

For your debt consolidation solution to be successful you now deal with the hardest - and most critical - procedure (which should be carried out at the same time with the first):

STOP BORROWING!

You should not help yourself to incur any further debt until you have paid the first down to a reasonable level. That level is zero for credit card junkies. For others, it can be in the 5% range. For some with extensive willpower and are willing to eat the overhead, 20% is the maximum.

Facing your situation and making a commitment to long-term change are the two hardest items for anyone who has entered financial difficulties to do. But they are the bare minimum required, if you want to recover your financial fitness and prosperity.