Related Info

• Budgeting and Saving
• Consumer Help and Tips
• Credit Report and Credit Score
• Dealing with Debt
• Family and Money
• Managing credit card debt
• Smart Shopping Tips
• Credit Counseling and Debt Counseling
• Housing Counseling
• Other Articles
• Helpful Links

Credit Card Debt Consolidation

Wise Use of Credit Cards and Debt

The average American household with at least one credit card carried a credit card debt of over $8,000 in 2004. Make sure to use credit cards wisely to benefit yourself and not your creditors. Shop for credit as you would shop for anything else. Compare interest rates and total finance charges before making a loan or purchase. Before signing an agreement make sure to first read it completely, including the fine print.

Don’t borrow money to pay necessary living expenses such as food, utilities, or gas. They will be gone before the payments, and you will need to replace these items as they are used. Don’t buy anything on credit that does not have the value to outlast the installment payments.

Don’t borrow money to pay off debts, and then continue to use the same charges to run up additional debt. This defeats the purpose of a consolidation loan.