Help to Consolidate Credit Card Debt

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    Debt-Consolidation Basics

    • Debt-consolidation companies can provide you with a single loan that will eliminate all or some of your credit-card debt. You then make one payment each month to pay down your new loan.

      The goal is to eliminate several high-interest sources of debt with one lower payment.

      There are downsides to a debt-consolidation loan, though. It will hurt your credit score to take one out. And many debt-consolidation companies charge high commissions. Some companies may even structure your new loan so that you'll end up paying more than you would have had you paid off your original credit-card debt.

    Reputable Firms

    • The key is to find a reputable debt-consolidation company. Check with the Better Business Bureau to make sure a company you are considering has few if any complaints against it. Ask, too, for references from the company. Call these references to find out if the debt-consolidation company treated them fairly.

      If you know family members or friends who've taken out a debt-consolidation loan, ask them if the company with which they worked delivered on its promises. If your friends or family members give a positive review, you might consider working with that company.

      A reputable debt-consolidation company can help you gain control over your credit-card debt. Don't skimp on the research when searching for such a company.

    Old Habits

    • Debt-consolidation may help you pay off your existing debt. But it doesn't cure you of the bad spending habits that got you such high credit-card debt in the first place.

      Don't make the mistake of running up your credit-card bills again after you've taken out a debt-consolidation loan. Learn how to properly control your spending; if you can't afford to buy something with cash, don't purchase it.

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