It is extremely easy for credit card debt to spiral out of control.  You make your minimum payment one month and again the next month, but if you are adding to this debt on a continual basis you are going to end up sinking in interest and high payments.  People who find themselves in this precarious situation with thousands of dollars in credit card debt will benefit by taking out a credit consolidation loan and paying off their credit cards.  They should then close their credit card accounts and request that they are marked with “customer requested account to be closed.”

Credit card balances should first be transferred to the credit card with the lowest interest rate.  You will then take out a credit consolidation loan with your lender.  The loan will be used to pay off your credit card and then you will make monthly payments to pay off the loan.  You should close all other accounts accept the card with the lowest interest rate.  This card may be kept for emergency situations only such as fixing a broken down car or buying gas when you are stranded.  The card should not be used for purchasing new shoes for a party and you just don't have enough cash to buy them with.  Frivolous purchases are the easiest way to get into credit trouble.

Most lenders will ensure that you make timely payments on your credit consolidation loan.  If you are even one or two days late they will be sending you letters and making phone calls to you.  They will make sure that your payment history with them is very good.  This may actually help your credit in the long run.  The one downside is that if you have a poor credit rating you are most likely going to have a high interest rate on the loan, but on the other hand, at least you are taking care of your financial situation.