Consolidation is often a necessity for students, new graduates, or people who have filed for bankruptcy some time ago. If you've handled your payments well and managed to clear up your record to a certain degree, there is no need to continue paying more than it's worth for your credit cards. Sit down and go through numbers carefully, and think analyze problem realistically. Don't forget to check your credit report and your credit rating before you start anything - it will help you plan and plead your case. Also, if your credit request gets rejected, don't forget to ask for your free copy of credit report.

Of course, credit card consolidation is not a miracle solution for all your financial problems. On contrary, you may find that it requires a lot of financial discipline to make payment on time and to straighten things up. However, it is less confusing than having several small credits, and so it is easier to keep things under control.

There is also option of getting credit counseling, if things get really confusing. A successful plan will make sure you make payments on time and regularly, without putting a strain on other aspects of your life. Of course, it's a lengthy process, usually taking one or two years - but it's worth trouble.

Sometimes, you can lower costs by consolidating your debt through a second mortgage - but be really careful about hidden costs and problems - you may want to consult with a specialist or two before taking this step. Usually, this means that your home will become collateral, and you may lose it if things go wrong. Also, costs add up quickly and you may end up paying more than you initially thought.

Reputable credit counselling organisations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counsellors are certified and trained in areas of consumer credit, money and debt management, and budgeting.

Counsellors discuss your entire financial situation with you, and help you develop a financial plan to solve your money problems. An initial counselling session typically lasts an hour, with an offer of follow-up sessions.

Be wary of credit counselling organisations that:

charge high up-front or monthly fees for enrolling in credit counselling.

pressure you to make "voluntary contributions," another name for fees. won't send you free information about services they provide without requiring you to provide personal financial information, such as credit card account numbers and balances.

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