There is an easy way to figure out both debits and credits in accounting terms and that is to figure out following: what did you receive and where did it come from. The debit is what you received, and credit is where you received it from, in accounting terms. So for demonstration sake, let’s say you bought a CD with cash you borrowed with a Payday Loan. The CD is what you got, so it will be a debit in accounting world, and credit will be applied to liability you carry on your bank account for exact same amount.

 The bank can easily confuse people learning about credits and debits in accounting sense of words, especially when discussing liability. For instance, when you put money in bank, bank’s liability to you increases, and since liabilities are credits, they are crediting your account (in accounting terms). And when bank lowers their liability to us (by us taking money out of bank) banks are debiting liability account, from an accounting perspective.

Basically it comes down to being able to figure out what you got and where exactly it came from; if you can figure these out for every transaction, then you’ve got accounting terms of credit and debit down pat.

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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.