If you have unsecured debt, you are paying too much in interest charges. These interest charges can literally eat away at your family’s budget until it becomes impossible to make ends meet and afford life’s necessities. Pushed to the brink, many families turn to unsecured debt to fund these necessities and start on a downward spiral that can ultimately end in bankruptcy if something is not done to turn things around.

Fortunately, there is a solution to solving financial problems associated with carrying around too much debt: debt consolidation. For many families a consolidation loan can turn their financial picture around instantly and offer hope of a debt-free financial future.

Perhaps the most popular type of consolidation loan is the second mortgage. By applying for a second mortgage, families can cash in the equity that has built up on their home and use it to pay off high-interest debts. Over time, paying off debts through a consolidation loan could save thousands of dollars in unnecessary interest charges. Here’s how:

By far most unsecured debt is related to consumer spending and credit cards. Most credit card companies charge anywhere from 21 to 30 percent in interest annually on balances that are carried over from month to month. That means that a $2,000 credit card balance with an interest rate of 29 percent could cost you almost $50 a month in interest payments alone.

Add on to that the fact that most credit card companies only include 1 percent of your principle balance in your minimum monthly payment, and you could spend decades paying off an unsubstantial debt if you only make your minimum payments.

A second mortgage helps bring an end to all of that by combining your high-interest accounts into one loan with a much lower interest rate. That means that less of your money goes toward interest and goes to pay off your debt quicker. In most cases, the payment amount for a second mortgage can also be substantially less than if you continued to pay all of your debts separately. You save all the way around.

So, what are you waiting for? The only thing you have to lose is your debt, and I’m sure you won’t miss that.