How to Consolidate Credit Card Debt

If you've maxed out all of your credit cards, then debt consolidation is the only way to regain control of your finances. Whether you seek help from a professional or go it alone, you need to follow a few basic steps, to keep your debt under control.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Scissors
• Low rate credit card
• Willpower

1. Stop using your credit cards. The more you use them, the more debt you will accumulate. Cut them up if you need to.
2. Calculate how much debt you owe on your credit cards. Work out how much you need to repay each month. Find out which cards have the highest balances outstanding.
3. Call your credit card companies and ask them to lower your APR. Be persistent. Paying a lower rate of interest will help you to clear your debt sooner.
4. See if your credit card companies offer any deals to help with debt consolidation. A low, long term interest rate can cut your monthly payments and improve your finances. And a zero percent balance transfer will let you start repaying your debt, instead of interest.
5. Transfer all of your credit card debts onto your lowest rate credit cards, if possible. This is the quickest method of debt consolidation.
6. Pay more the than the minimum payment each month. If you pay the same amount as you did before the consolidation, you will reduce the debt more quickly.
7. Stick to your plan and soon you will be out of debt, with your finances under control.

Tips & Warnings

• You can also seek professional advice on debt consolidation from a credit counselor.