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===Option 3. Consolidate your debts===
Consolidating your debts means combining them into a single payment. There are three main ways to do this:

* a consolidation loan
* a line of credit
* a debt repayment plan

A '''consolidation loan''' is a single, new loan used to pay off multiple debts. Usually, the interest rate (and monthly payment) is lower than when paying multiple debts.

Opening a '''line of credit''' for the amount you owe is another way to consolidate your debts. You use the funds in the line of credit to pay off your debts. Usually, the interest rate on a line of credit is lower than when paying multiple debts.

With a '''debt repayment plan''', you set up an account with a credit counselling agency. You deposit a monthly amount into the account. The credit counsellor uses this amount to pay your creditors until your debt is erased.

We walk you through each of these options in more detail. See [https://www.peopleslawschool.ca/consolidating-your-debts/ consolidating your debts].