Consolidating credit card debt - you can also consolidate your debt on your credit card security

Are you drowning in credit card debt? Have your minimum payments skyrocketed so that you can barely keep up with them - if you can even keep up with them?

Debt consolidation may actually be the answer for you.

Now, make no mistake - it's not a magic road to financial freedom. There are potential downsides. For instance, if you put up your house or car as collateral for the low interest loan that you use for the consolidation and then you default on the loan, you can lose your house or car. It's a serious commitment. However, if you are serious about getting out of debt, a consolidation effort may absolutely be in your best interests.

There are a couple of different routes you can choose if you are going to consolidate your debt. One way is to simply apply for a loan or a line of credit through your own bank or credit union, specifically if you have a good or long standing relationship with that institution. This has the advantage of being easier on your credit rating, or FICO score.

Another option is to choose a firm or non profit organization that specializes in helping individuals to consolidate their debt. This has the advantage of having professionals working on your case that do this for people all day long, every day. They know what they are doing, they know the ins and outs of the system, and they have relationships with the big credit card company. However, using one of these companies can count as Ding against your credit score.

As with any financial decision you must make a choice based on what is best for you, after careful consideration of all factors.