Credit Card Debt Facts - How to Consolidate Credit Card Debt
By Phil Rather

Do you need to consolidate credit card debt? Lots of people do these days. Did you know the average person carries between 6 and 7 credit cards? That's a lot of debt! It's also a lot of monthly payments to keep track of, and each one carries a high interest rate. You can consolidate all of that debt into one lower monthly payment by getting a new card and transferring the balances from your other cards onto it. Here are some things to look for in a new card to be sure you're getting the most out of your debt consolidation project.

Look For a Card With 0% Interest

Many cards offer introductory interest rates of 0%. Find one of these and make sure the 0% offer lasts for at least a year. Put all of your other existing credit card debt onto this card and you won't have to pay any more interest for as long as the 0% offer is in effect! This will save you a LOT of money.

Look for Good Balance Transfer Offers

Watch out for a card that has balance transfer fees attached to it, especially if you are trying to reduce your debt - you don't need another 3 or 4% interest charged for the transfer. Not every card charges transfer fees, so look around until you find one that doesn't.

Make Big Payments Each Month

The larger payment you make, the quicker you'll be out of debt. You should especially be making larger payments while the 0% introductory interest offer is in effect, since all the money you pay will be going to the principal on the card. You'll be much closer to being out of debt when the 0% offer is done if you make large payments. Don't go crazy, just pay as much extra on the card each month as you comfortably can.

Make No New Purchases on the Card

You're trying to get out of credit card debt, not get farther into it. Keep you new card for consolidating debt and paying it off only, and don't buy anything else with it. Take your old cards and cut them up, so you don't buy anything new with them, either. This will protect your finances and keep you in control of them much better, and you'll be out of debt in no time!