Should You Consolidate Your Credit Card Debt?

One of the most demoralizing things in life is credit card debt.

Credit cards can be useful in helping you manage your cash flow, as well as help you build a credit history.

The flip side, though, is debt.

Credit cards can come with high interest rates, and paying them down can become a difficult exercise — and even seem futile.  Without a solid plan, and way to ease the transition, paying off your credit card debt is beyond challenging.

One way to get moving with credit card debt pay down is to consolidate your credit card debt.

How Debt Consolidation Helps

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Tackling Debt: Start with the Credit Cards

When it comes to tackling debt, it can be difficult to decide what you should tackle first.

The good news is that it doesn’t have to be a tough choice.

Start with the credit cards, and you are likely to see good results. This is because credit cards generally have high interest rates.  If you start with your credit cards, you are more likely to get rid of the highest rate debt first, and let you concentrate on other debt later.

Paying Down High Interest Debt

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Why Your Credit History is Important

One of the items that you have probably discovered in your efforts to improve your finances is that your credit history is important.

Your credit history, usually condensed down to a three-digit number known as your credit score, is used by a wide variety of financial service providers, especially those that lend money.

But why is your credit history so important?  And does it even matter if you don’t plan to borrow money?

Credit History: Your Financial Reputation

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How Many Credit Cards Do You Have?

Credit cards have become ubiquitous as a method of payment.

Indeed, it’s much more common to see a customer pull out a credit card than pull out cash.  According to the Federal Reserve, in 2008 the average cardholder had 3.5 credit cards.  However, I have to admit that I have had many credit cards over my life.

One of the reasons that many of us seem to accumulate credit cards, though, has more to do with trying to keep the credit score intact than anything else.

Collecting Cards for Credit History and Limit

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