You really don't need to hire a debt settlement company to negotiate with your creditors.

Rolling all of your debts into a single loan is a good idea - in theory. In fact, it can be a great idea.

Debt settlement companies work as a middleman between you and your creditor. If all goes well (and that's a big if), you should be able to settle your debts for cents on the dollar. You'll also pay a fee to the debt settlement company, usually either a percentage of the total debt you have or a percentage of the total amount forgiven.

You also need to understand that when you consolidate credit card debt into mortgage debt - like a home equity loan or a HELOC [ home equity line of credit ] - you're taking an unsecured debt and turning it into a secured debt.

Even in the days of the tightest credit in 2008, HELOCs [ home equity line of credit ] and home equity loans were being made.

One thing I want to make clear: You never want to hide from your debts. It doesn't work.

If you'd asked me a few years ago about debt settlement companies, I probably would have told you to avoid them.