By Don Taylor, Ph.D., CFA, Bankrate.com

Dear Dr. Don,
I am 24 years old and have a lot of debt due to some unforeseen circumstances and some irresponsible actions. I have over $20,000 in credit card debt, and making just interest payments over the last couple of years is tiring, even though I don't think it's done any real damage to my credit. I want to consolidate my debt into one bill/loan, thus making it a lot easier for me to manage it and make payments. I have about six credit cards and have only missed a few payments.

Is it possible to consolidate the debt into one loan and work on paying that at a lower interest than many of my credit cards? I also have a student loan that I will be tackling soon too. I have tried to move my debt from one credit card to another using zero-percent balance transfers, but I'd rather just have one loan and one payment. Does debt consolidation hurt my credit, or should I look into it to help me for the future? I am currently married and do not have a great paying job, but my wife has a fantastic job and fantastic salary. Does this hurt or help my efforts? Please give me any advice necessary to attack this problem and help me eliminate this debt responsibly.
-- Randy Riddle

Dear Randy,
Lowering the interest rate and extending the term on the loan are two ways to reduce the monthly payments on your loans. Credit card debt, as you've learned, can be especially insidious, since there's no fixed repayment schedule. Once it's piled up to the point where you can't do any more than make the minimum payments, it becomes very difficult to turn things around. One thing to consider here is that, with no required repayment of principal, you've only been able to keep up with the interest payments, even when some of those balances were at zero percent. Add student loan payments to the mix and you won't have much flexibility in your monthly budget to pay down these balances.

When you have equity in your home, a home equity loan or home equity line of credit is often the best solution for debt consolidation, that is, if you don't plan on filing for bankruptcy. If you expect that you might have to file for bankruptcy, then the last thing you want to do is turn your unsecured credit card debt into secured home equity debt.

Missing a few payments shows up on your credit report and stays there for seven years. Debt consolidation shifts the credit risk from several lenders to one lender. When you fill out the loan application, the lender will review your credit and is going to have a hard time figuring out why it should loan you money long term at a lower interest rate than what you're currently paying on your credit cards.

Debt consolidation is different from a debt-repayment plan arranged through credit counseling services. Consolidating your $20,000 in credit card debt into a single loan would satisfy your current creditors and replace your debts with a new debt. A debt-repayment plan works with the existing creditors to structure a repayment schedule. Often the credit counselor can negotiate a reduction in interest rates on the debt so more of your monthly payment goes to principal.

You and your wife each have a separate credit report. Joint accounts are reported on both credit histories and authorized users are reported on both accounts. In community property states, virtually all credit obligations taken on in a marriage are joint obligations. The community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

You haven't discussed how you and your wife handle the family's finances. It's time to have a family meeting and discuss your problem and possible solutions to that problem. If you don't have a household budget, for example, you should put one together. You may decide to speak to a credit counseling service or a fee-based financial planner to be able to get a grasp on what has to happen to turn this situation around. The National Association of Personal Financial Advisors can help you find a fee-based planner in your area through its Web site.

Work on this as a team, even if you're keeping your finances and credit histories separate. You're in a marriage. Share life's burdens. Don't shoulder everything on your own.