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Step 1
The first step to successfully consolidate credit card debt is to stop using your credit cards. For many, this may be the most difficult part of the process.
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Step 2
Determine if you'll use a credit card debt consolidation company or if you'll do it on your own. Certainly there are reputable organizations that will assist you in your managing credit card debt, but if you take some time it's easily something you can do yourself. If you choose to go with a company, check with the Better Business Bureau on their reputation and find out how the company makes money. You shouldn't be charged an exorbitant amount of money for credit card debt consolidation services as that defeats the purpose.
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Step 3
Apply for a home equity loan. This is a viable option if you own your home and have equity built up. These loans generally offer very favorable interest rates. Make sure to read the fine print to see if the low interest rate is just an introductory offer. If so, find out when it will change and to how much; you'll want to be able to pay off the credit card debt before the rate changes.
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Step 4
Credit Card Debt SolutionsNegotiate with your current credit card companies. If you owe on several different cards, talk with each to find out what their options are for consolidating credit card debt. Many times they will offer 0% interest or very low rates to encourage card holders to put additional debt on their accounts. This can be a good deal for you IF you pay off the amount before the rate changes. One of the caveats of these programs tends to be that if you're late - even one day - the interest rate goes up significantly. This method works only if you take the time and responsibility to manage the credit card debt.
