Credit card debt has become an epidemic in America.
It is now common for the average household to owe over $8,000 in credit card debt.
This is a frightening situation for many.
Debt consolidation is one important way for consumers to combat their credit card debt and get debt relief.
Debt consolidation allows the consumer to merge their several credit card balances under a single loan.
By using a debt consolidation loan, consumers gain the convenience of only having to make one monthly payment, and they save money on the low interest rates these loans usually carry.
Besides obtaining a debt consolidation loan, consumers should consider a credit card balance transfer.
This requires moving card balances with the highest interest rate to the card with the lowest interest rate.
A balance transfer as a method of debt consolidation is helpful for those with a small amount of credit card debt.
Whether the consumer acquires a debt consolidation loan, or transfers their debt to another card, it is always important to pay their bills on time.
Furthermore, consumers who are able should make double payments every month.
This will greatly shorten the life of their debt, and save a lot of money in interest payments.
A major risk of debt consolidation is that the consumer will fail to change their habit of reckless spending.
To have a long term impact on their financial future, consumers should close their zeroed credit card accounts.
In combination with making more than their minimum payments, this can greatly improve consumer's financial standing.