Quite simply, the use of credit cards to consolidate your credit card debt is not as effective as debt reduction. There are many credit card companies that offer low interest balance transfer deals designed to entice an individual to transfer their high interest credit card debt: However, once these offer periods are over the interest rate reverts to a much higher rate that often leads you into deeper debt. It’s common knowledge that credit card debt is the main reason for leading debtors to begin looking for debt consolidation solutions that will reduce their debt.

Debt reduction, by definition, is the reduction of the amount of debt and therefore monthly bills and not to add to or maintain the level of debt by using another source to pay it off. Therefore, you should not even consider the use of credit cards to consolidate your debt and instead you must find an alternative that reduces your debts.

If you have a mortgage, auto loan, personal loans and credit card debt and they add up to $1400 in repayments each and every month and you need to reduce your outgoings dramatically you may well ask if this is possible. In a word, yes; but are there lenders that will offer a consolidation loan in order to combine all of this debt into one lower, more manageable payment?

Again the answer is yes. There are loans currently available that offer cash back, underpayment, and overpayment plans; secured and unsecured, although the latter is definitely a lot more difficult to obtain nowadays…

Loans secured or otherwise, will offer a vastly reduced interest rate compared to credit card debt consolidation using the balance transfer method meaning that your monthly bill would be greatly reduced.

Furthermore, if your loan offers a cash back offer, you can then use this money to payoff some of your high interest debt.

Finally, a word of warning to all who are wishing to consolidate their credit card debt. Consolidating your debt will clear your credit card balances but - if you see this as a green light to revert back to the same spending practices that got you into financial difficulties in the first place you will be sorely mistaken.

Going back to your old habits will create a financial situation even worse than the one that you consolidated out of and this time there will be no consolidation available to bail you out.
will create a financial situation even worse than the one that you consolidated out of and this time there will be no consolidation available to bail you out.