Credit Card Debt Consolidation The benefits of credit card debt consolidation are many, but the most important one is peace of mind for having to make one single payment a month while gaining better control over your debt. If you have a good credit history, you might succeed in negotiating a lower interest rate with your credit card provider. In many cases, the introductory rate is zero or very low. However, depending on the amount of money the holder brings onto the card account, the provider may offer a lower interest rate. Regardless of your financial situation, gaining control over your debt and spending, though seemingly hard at first, will come with a sense of accomplishment. In addition to consolidating your monthly bills into a single, more manageable payment, credit card debt consolidation brings two more advantages. Collection agencies and creditors will wave off or reduce any over-the-limit charges and late fees. Second, thanks to this debt management strategy, you will stop getting harassing calls from the latter. If you consider using the services of a debt consolidation company, it is important to read online complaints and reviews, together with client testimonials on its website. In addition, it pays to look at the accreditations received by the provider and make a thorough service background check. Once you have gathered as much information as possible, it is time to attend a free counseling session as to find out more details about the programs available. Ask the company representative about the ways they will assist you in eliminating your debt as well as about the fees charged. As an alternative method of credit card debt consolidation, you can think of consolidating your monthly payments on your own. To this purpose, you need to transfer balances from high interest credit cards to such with low interest. After transferring the balance, it is important to not close your other credit card accounts at the same time as this will have a negative effect on your credit score. With the do-it-yourself alternative, you have to follow several steps. First, prepare a list of all debts, together with creditors’ names, and arrange your credit cards in the order of priority. Second, list all sources of income, including state benefits and wages. Calculate the amount you can afford to spend on all bills on a monthly basis. Then, make a decision on who to pay first, making sure the creditor still holds your debt or it is already sold to a collection agency. If the credit card provider has turned over your account to a CA, you should request them to validate your debt before you start making payments. It is best to send a debt validation letter. The next step is to negotiate reduced payments on all high interest debts as well as lower rates. It is important to make sure that the monthly payment is not in excess of what you can afford. Negotiate with the collection agency or your creditors to wave off the late fees. Finally, for the purpose of consolidating your credit card debt, you can make a balance transfer if you were using multiple credit cards. Just transfer balances to a credit card with a zero or low interest rate. In this way, you will be making a single payment rather than multiple ones, paying considerably less in interest.