Three of the most common methods of consolidating debt are to refinance, apply for a home equity loan or debt consolidation. If you're in over your head, however, you may find that you do not qualify for refinancing.

You're not alone. Due to the decline in the nation's economy banks have gotten stricter in their lending policies meaning a lot of people no longer qualify for loans while the added expense of loan consolidation may not be an option for individuals struggling to pay their current obligations.

You might have better luck with a non-traditional method of consolidating your debt. Non-traditional lenders offer more lenient qualifying terms making it easier for most people to get the money they need.

Micro Loans: an excellent method of debt consolidation, micro loans are usually loans for a smaller amount of money which covers only the amount of your debt. The advantage of a micro loan is that you do not take on any more debt than you are already carrying. Because the lender takes a smaller risk, these loans are usually easier to qualify for. Also, you can qualify for a microloan with just a signature on a promissory note, although if you can offer collateral you'll stand better luck of receiving the loan. Collateral doesn't have to be your home: it can also be a boat, car or collectible item, so there's less risk to you.

Private Money Lenders: often private lenders will offer debt consolidation loans to individuals they feel can repay the loan. These loans are relatively easy to obtain if the loan is structured so as guarantee that you can make the monthly payment. The benefit to you is that you are making a lower monthly payment. People who have held the same job for a long time find it easier to qualify for these types of loans, so long as you make payments on time and without interruption. The main drawback to thse loans is that you will pay a higher interest rate since the lender is taking on a bigger risk. However, you can reduce the monthly payment by extending the term of the loan.

Life Insurance Plans: it's possible to borrow money from a life insurance plan, but as above there are drawbacks. While usually you don't have to pay the money back, if you don't this reduces the amount of benefit your family receives. To alleviate the discomfort of that reality it'fis a good idea to repay this type of loan as soon as you can. Most people prefer not to leave their loved ones in the lurch should it become necessary to pay funeral expenses.

Friends and Family: this type of loan is quite possibly the most difficult to obtain, particularly if you have a history of poor credit. On the other hand, if you tend to pay your bills on time and can come to a reasonable agreement on a repayment plan, you may find help. Be forewarned: should you be unable to make the payments it can create lots of hard feelings. The best thing to remember in this case is never to borrow more than you can afford to repay. On the other hand, once the loan is paid back, with a little interest if possible, the feelings of trust you create between you and your loved one could proved well worth it.