December 28th, 2008 
Elisheva Wiriaatmadja
The most abused term in the financial world would probably be ‘credit card debt consolidation loan’. Instead of consolidating debts and relieving Americans from their debt problems, this loan is more likely to bring you deeper in debt if you do not properly plan it. If you failed getting out of debt by making regular payments monthly, it is better for you to stay away from a credit card debt consolidation loan.
Some people may not have a choice than to consider taking up this debt consolidation loan. But before you do so, make sure you analyze which of your credit card payments will be covered by this loan. When you are already in this debt consolidation program, the first thing you have to do is closing the account with that certain credit card company. Usually people tend to be tempted to use the remaining balance again and then bury themselves even deeper into debt. This is usually how you will get into a bigger problem.
Using credit card debt consolidation loan requires you to be serious and discipline in getting yourself out, otherwise you will only end up worse than before. Be prepared to cut your credit cards as soon as you pay off the credit card debt using your debt consolidation loan. If you really need a credit card, stick only with one. Only people with determination will be able to stick to their goal to clear off their debt.
Another option to help you get out of your credit card debt is by transferring your balance to another card. There are advertisements offering you an alternative to pay off your card without paying any interest. This may be a better option than applying for a credit card debt consolidation loan.
However, the final amount can eventually add up to even more than what you originally owed. In fact, a lot of people get themselves into more and more debt because they used the balance transfer method with a second or even a third transfer loan added on. If that’s the case with you, then you should just talk to a counsellor instead.
Before applying for a loan, remember that the credit card debt consolidation loan is only for you who are ready to give up your credit cards and close down all your accounts with your credit card companies.
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Credit card can be useful but also very dangerous for people that like to shop much without further thinking
So, it’s better to have a debit card rather than credit one if you have that money..
Preventing and getting out of debt both require lots of discipline, especially if you are a spendthrift. I prefer to use a debit card instead.
Great tips! I finally paid off my credit cards and have done everything I can not to charge anything on them so that I won’t have this problem. I know this is a big issue because a friend of mine was just telling me today that she wanted to consolidate loans. I will pass on the info!