Part of Our Healthy Finance Series:

Credit Card Debt Consolidation Tips

Anyone who has had a credit card knows how easy it is to let things get out of hand. Charging what seems like a few small items to a card can suddenly pile up into a couple thousand dollars and interest payments are through the roof.

And, if you're really in trouble, you've got multiple credit cards exceeding $10,000 owing, and you can only make the minimum payments on them all.

When caught in this credit-card-trap, it may seem like you have no way out. However, if you plan carefully, do your research, and make informed financial decisions, you can start working towards financial freedom.

One way to do this is through credit card debt consolidation.

Typically, credit cards have high interest rates - especially the ones with bonus features such as cash back or mileage points. One way to consolidate your debt and save money is to get approved for a low interest credit card and transfer the amounts owing on all your other credit cards on to the new card.

Here are four things to consider:

• Consolidating multiple credit card debt on cards with varying high interest rates onto a low interest credit card will save you money on interest. This will allow you some extra money to put towards the money you actually owe instead of just making minimum payments, which will get you nowhere very slowly.
  
  
• Making one payment per month can ease the burden of your debt. You will likely feel less stressful keeping track of only one credit card and will learn to manage your finances in a healthier way.
  
  
• When trying to pay down your debt, it is important that you don't keep contributing to it. That means only spending what you earn and refraining from adding charges to your new card.
  
  
• Even though you've paid off your other credit cards and the balances are zero, you shouldn't keep them. Cut them up immediately. It will be a good symbolic starting point on your path to financial freedom.

Credit card debt consolidation can help people change bad habits and move forward in a positive way financially.

However, there are many pitfalls out there and you should be careful before you make any major changes to your finances.

Make sure you research all your options and then choose a credit card and company that are right for you.

One thing to watch for is 0% interest offers from credit card companies that want you to transfer your balance from other cards. These are introductory offers and can help you to pay down a considerable amount of your balance before interest accrues. Make sure the eventual interest payment is something you can live with before you decide.

Most importantly, keep a positive outlook. Remember that you are taking steps in the right direction and you are on your way to debt freedom.