You may wish to consolidate credit card debt when you’re unable to deal with a number of credit card balances.  Credit card consolidation enables you to forward all your balances into a single card and continue making payments on it till the time your entire debt is paid off.  In case you don’t follow the right approach it might simply be more expensive than what you believe it to be in theory.  You must seek the best possible way of consolidating credit cards before you apply for another credit card or loan.

Are you burdened with credit cards charging a much higher interest?

Following debt consolidation tips may help you pull out of your debt burden:

1.  Keep an Eye on Your Credit

Go through your credit reports and find out the errors.  You may not receive any urgent debt consolidation assistance if your credit report shows an error.  There are a few websites that show you through free credit scores and explain what a credit report is all about.  You must seek a yearly credit report from each of the credit reporting agencies for free.

2.  Consolidate Balances to a Credit Card Charging Lower Interest

You may opt for a low interest credit card if you possess good credit.  While paying off your debt, you may save much in terms of finance charges every month.  All you need to do is to convert all credit card balances showing a higher rate of interest into one card.  A number of credit cards depicting lower interest rates or balance transfer options are offered to individuals reflecting good credit.

Silenced by debt by Quinn Dombrowski, on Flickr.  This work is licensed under a Creative Commons Attribution-ShareAlike 2.0 Generic License.

3.  Obtain a Loan from a Credit Union or Local Bank

A credit union or your bank may simply provide you with any personal loan that enables you to consolidate credit card debt.  You may seek more information on such loans once you contact the loan officer working under your lending institution.

You must inquire about the credit requirements of your lender prior to applying for your loan.  Ask if your loan qualification depends on possessing a certain credit score.

4.  Contact Any Online Lender for a Consolidation Loan

In your attempt to apply for an online debt consolidation loan, you must pick a renowned lender.  You may compare a few of them online and check out the ranking of your favorite lender with the BBB website.  You may come across a few sites showing reviews and complaints posted by past users of this lender.  You may even get in touch with the office of your state attorney general to find out facts concerning their registration.  The Department of Banking or Financial Regulation in your state may even provide you with the same information.

Avoid a lender that’s willing to provide you with a loan irrespective of your debt burden.  In case you come across a lending company or website that offers a credit card consolidation loan against an upfront charge, you must avoid it.

5.  Enroll for Any Debt Management Plan

While inquiring about any debt management plan, you may consult any credit counseling agency.  This agency is supposed to receive a single monthly payment from you under your debt management plan.  It is from this amount that the agency is likely to repay all of your lenders.  By participating in your debt management plan, you may fetch a discounted interest rate on your credit card balance from your lender.

The best debt consolidation company will walk an extra mile to make you feel more comfortable with your payments.