Another way to consolidate your debt is to obtain money over the value of your house. With a second mortgage, both interest rate and monthly payments would be considerably lower than you current debt, freeing up more money to pay it out. However, taking a second mortgage may put your house in risk.
Before seriously considering this option, ask yourself the following questions, and answer them truthfully:

• Have I taken control over my expenses, making possible to live within my possibilities, expending less than I earn every month?
• Have I developed healthy money managing habits, making sure that when my current financial crisis is over I’ll keep saving and spending wisely?

 
If you can honestly answer “Yes” to these questions, you can start contemplating the possibility of getting money over the value of you house to consolidate your debt. If you can’t answer “yes” to each question, it is highly possible that once you have paid your current debt you will go back to the same unhealthy habits that got you in trouble in the first place. At some point, your total debt might threaten you ability to pay your mortgage that is now higher than before due to the additional debt added.
If you don’t manage your second mortgage responsibly, you might end up loosing you house.
If you decide to take a second mortgage of you house, make sure that you are working with a candid financial institution. If you plan to stay in your house for a long time, and you have a fixed rate with low interest over 30 years, be careful with those institutions that promise lower payments by converting your mortgage to an adjustable rate, which can translate into lower payments in the short term but could also mean considerably higher payments in the years to come, if the interest rates rises.
Also, be careful with penalties for early payments on loans, as well as loans with payment of a higher amount, unless you understand them fully and feel comfortable with those terms.