For borrowers out there who currently have more credit card debt than they can handle, it is important to be aware that there may be assistance available. If you have high interest rates on your credit cards, consolidating these debts can be a smart move. In this article we will list a few ways to go about consolidating this type of debt. This may be very useful for borrowers who are struggling to maintain other bills as well.

When most people consider consolidating their debts, the first thing that usually comes to mind is a debt consolidation service. Since our economic crisis began, this service has been blasted all over the television and ads across the internet. Contacting one of these firms may be a good idea for those out there who have already begun to miss payments, or have been late on prior payments. This type of service can help you minimize the damage to your credit rating and also help you begin repairing any negative marks on your report.

A consolidation loan is a great way to obtain one payment at a low interest rate. This approach will allow the borrower to get out from under several different credit cards with various rates, and into one loan at a fixed rate that is generally much easier to manage. Instead of having to pay off all of your credit cards separately, you will have the convenience of one monthly payment at a low interest rate. This will allow the credit cards to be paid off sooner than if you were to pay them all separately.

Since most people consider this type of service just to get a better interest rate on their loans, it is important to realize that this is possible to accomplish on your own. If you have a credit card with a very low interest rate already, you may be able to transfer your balances to that card. However, this may be hard to do if you have already began to miss payments. This is perfect for those out there who have a hardship that is coming in the near future and are trying to avoid defaulting on this debt.

By using this method you automatically have created two major advantages that will help you better manage your budget. First, you now will only have one bill to manage each month, rather than multiple payments with various dates they are due. Second, you are going to start saving money immediately because of the low interest rate you have obtained. If you are able to manage this debt and avoid running up new balances than you can be out of debt in a significantly amount of time less than if you were to continue paying on all loans separate.

Get credit counseling first:

There are some agencies out there that provide credit counseling services that can help you accomplish this on your own. They can teach you various ways to better manage your debt while eliminating current bills at the same time. Some of them are even non-profit and do not charge their clients a cent!

The most difficult decision for the majority of borrowers seeking this assistance is deciding which company would be the best to work with. An easy way to go about this is getting a recommendation from a friend or family member that has already consolidated some of their debt. This is an easy way to find a reputable firm to work with.

Another option is to go through the National Foundation for Credit Counseling. This agency is a non-profit that helps borrowers find a reputable company to fit their needs. Here you will find various firms that provide credit counseling services. Try to deal with only non-profits as this service should be provided for free, those charging a fee for this service may be a scam so please be very wary when deciding who to work with. There is no need to spend money that you do not have.

With the economy at its worst, financial advisers are doing everything they can to make an extra buck. Credit and debt scams have been sprouting across the nation and are doing a great job advertising to distressed consumers. do not let yourself be a victim to their unscrupulous ways!

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.