Let’s face it; the economy is a bit tough right now. If the food prices aren’t getting you then the gas prices certainly are; it seems like everywhere we turn there is something else to pay for and another bill that has come due. For most of us – already struggling to keep our heads above water – the economy is just another obstacle that we have to face as our cash flow becomes tighter and tighter. No one is suggesting that we turn to credit cards to get through this difficult time but the reality is that many consumers are having to do just that. Before long, with balances growing and minimum payments on the rise, many people find themselves now strapped with significant credit card debt – and a suffering credit report - during an already fiscally frightening period of time.

It may be time for debt consolidation. A debt consolidation allows us to gather all of our credit card loans under one loan umbrella – leaving us one payment on which to focus at what is sure to be a lower interest rate than the various credit lines we are leaving behind.

While a debt consolidation can be accomplished with a bank loan or a home equity loan, it can also be accomplished with the use of a lower interest rate card. In order to make this happen, however, it is wise to compare credit cards to ensure that you are getting the best deal in terms of interest rate; after all it makes no sense to consolidate all credit card balances onto one card if you are not able to do so in such a way that saves you money and helps you pay off your debt faster.

In the next post, we’ll further discuss the importance of taking the time to compare credit cards for debt consolidation.

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