This unbiased, un-sponsored guide describes how to consolidate credit card debt. Like many Americans, do you feel as if your head is bobbing just slightly above the depth of debt? Would you like to lower your monthly payments and consolidate your credit cards to a single, easy to manage debt? This guide will explain the basics of consolidation debt and help you combine your credit card debt.

Consolidation means to combine or to integrate. When someone talks about consolidation loans, or asks if you would like to consolidate your credit card debt, they are asking if you would like to start a new loan and move many (or all) of your existing loans to the new one.http://www.thefreedictionary.com/consolidation

This process of consolidation can have several advantages including reduced overall monthly payments, reduced management and accounting of loans, one bill rather than several, a lower interest rate and lower or no annual fees.

This article will give you proven, reliable tips from industry experts and trusted sources including a Certified Public Accountant (CPA). You will learn how to create an easy personal budget, what consolidation options are available and how to avoid financial problems in the future.

Whether you are in debt and would like to know how to pay off your credit cards or if you're simply looking for information about debt consolidation, this article can help you.

1. Itemize your current income and expenses. Create a spreadsheet that lists each credit card, store charge card, etc. List each of the following items in a different column: Name of credit card, amount owing, total amount available, annual interest rate, annual fees. If you're not comfortable creating a spreadsheet, using an online debt consolidation worksheet can provide a general view of your basic finical situation.http://www.sayplanning.com/saygoodcredit/wkst.html

2. List which debts are "good" and which debts are "bad". An example of a good debt is a debt for education or a reasonably priced car. Both of these debts will help you earn money. An example of a bad debt would be miscellaneous outstanding credit card debt or a loan for a luxury item such as a boat or RV.

3. Call each of your credit card and loan providers. Tell each one that you are taking an active role in consolidating your debt and would like a lower interest rate and a credit option with no annual fees. When consolidating debt, it is not time to spend money on points or reward programs. Ask for simple, low interest, no fee options.

4. Review your credit history and credit score. People who have high (or good) credit scores qualify for lower interest loans and better overall credit products. There are a variety of different ways to obtain the credit history that lenders and financial institutions can see. If you have a good relationship with your bank, a simple and free way is to simply ask them. They may not be able to provide you with a printed copy, but by asking a financial advisor or loan officer, they may be able to give you your FICO score and review your complete credit history with you in an office.

It may be worth purchasing a copy of your credit history for less than $20. While there are a number of expensive credit score products, only basic information is needed when consolidating credit card debt. If you have never checked your credit score before or if you have no idea about what your FICO score is, it may be worth having a full, detailed report of your history. Companies such as Equifax are professional resources that have inexpensive products available to the public.http://www.equifax.com/compare-products/

1. Move debt from a high interest credit card to a lower interest credit card. Carefully review Interest rates, fees and all of the fine print. Often, credit card companies and loan providers offer a low short term introductory rate to attract people to their offer and then raise the rate after a certain number of months. Other offers require that you pay a yearly fee in addition to the interest rate.

2. Move debt to a low interest secured debt. Secured debt is debt that is secured by a physical object with value. A car, house, boat, property, etc are all examples of secured debt. This debt usually does not incur an annual usage fee and typically has a low interest rate because it is a long term loan secured by something that if defaulted can be sold for the value of the loan.

3. Completely explore your options. Financial institutions and lenders make money by providing creative, profitable lending and credit options. These options change frequently and can often be tailored to your needs. Often, people with debt don't enjoy talking about financial options and are looking for a quick fix. If you take the time to talk with bankers, lenders and salespeople, they can explain what products and services are available to you. Don't make any fast decisions - learn about all of the options from as many people as possible and a path will become clear.

4. Carefully calculate and shuffle cards. Once you have a firm grasp of your financial situation and have reviewed each and every option, shuffling credit cards and paying off debt quickly can have a number of advantages. Quite simply, take advantage of low interest, short term offers to accumulate fewer fees and pay off debt quicker. By moving debt temporarily to new low rate cards with clear and exact plan to pay off each card before the introductory offers expire, you can increase your overall credit score and pay off debt faster.http://www.smartmoney.com/personal-finance/debt/live-debt-free-21847/

This step is often the hardest, but most important part of debt consolidation. If you find a way to reduce your debt, consolidating your debt will cost less money and you will form good financial habits.

The first step to reducing your debt is identifying how much money you make and how much you spend. Beyond budgeting, forming a simple spreadsheet that explains how much money comes, how much goes out and where that money goes is an important step.

Beyond identifying your income and expenses, some ways to reduce your debt include:

1. Spend more of your disposable income on debt consolidation.
2. Form an advanced budget to track your expenses. A service such as Mint.com can be invaluable for this task.
3. Eliminate all frivolous expenses. Eg: People often don't require landline and cell phone service.
4. Increase your income by asking for a raise.
5. Only buy things that you need. Don't buy things that you simply want.
6. Obtain a second job. Even a few hours a week completing a simple task, delivering papers, waiting tables, etc can pay down debt quickly.