In the last post we discussed the reasons that consumers today may consider a debt consolidation – especially in this economy. After all, many of us have found ourselves seriously over our heads after racking up significant credit card debt in response to our limited cash flow. Even a trip to the gas station today can leave our wallets hurting; there seems no end in sight to the prices that we have to pay.

When we do find ourselves in over our heads, a debt consolidation loan can make sense. And instead of turning to a bank loan or home equity loan, many people find that it’s just as easy to transfer their credit card balances to a lower interest rate card where they can focus on making bigger payments toward eliminating the entire debt.

In order to make sure we are getting the best deal it pays to compare credit cards. There are several points on which it makes the most sense to compare credit cards in order to give us the best chance for success, including terms and customer service. But above all – in terms of debt consolidation – the most important thing is interest rate.

The interest rate is the most important point on which to compare credit cards. After all, if we are toiling in our effort to pay several cards at once and the interest rates are so high that we are struggling to make minimum payments, a lowered interest rate can literally save us thousands of dollars on our loans combined; as well as lowering our monthly payment enough to make it more comfortable for us and enabling us to increase our cash flow. Some cards even offer introductory rates if you transfer your other balances onto the card - introductory rates that include low and even zero percent interest rates for a certain period of time.

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