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    it card companies thrive off on consumers carrying a balance on their cards. Often times, as consumers reach their credit limits, credit card companies will raise their credit limit. The consumer then charges even more – digging a hole that progressively gets deeper and deeper.

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    sumers choose not to pay their monthly bills, which will obviously affect their credit score and chances for receiving credit in the future. Some may pick up a second job, while others may choose debt consolidation. But what is debt consolidation and how does it work?

    Debt consolidation involves taking revolving debt and combining it into one monthly payment. Some national companies specialize in helping consumers combine their credit cards – usually with a reduced interest rate – into one payment. They have longstanding relationships with various creditors and can often lower a cards APR into the single digits. This allows consumers to pay less per month, while at the same time having more of their payment go towards principle. Debt consolidation is an alternative to bankruptcy, and can have outstanding benefits to some consumers.

    It is imperative to understand th

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