With interest rates in general close to all-time lows but interest rates on credit cards still hovering near all-time highs, its no wonder there has been a rush for consumers to consolidate their consumer debt. If you do it right, consumer debt consolidation can help you eliminate your high interest credit card debt and get on the road to financial independence. We hope this article will help you get started.

There are many things to consider when starting the process of consumer debt consolidation. Eliminating that 18% percent interest rate loan on your credit card can go a long way toward getting your financial house in order. The tips listed below can help you toward your goal of being debt free.

What steps should I take when starting the consumer debt consolidation process?

There are several important things to consider with consumer debt consolidation. These items include:

• Know what you owe. This may well be the hardest part of the consumer debt consolidation process. Gather all your bills together and list your debts in order, starting with the largest balance. Be sure to list the minimum monthly payment and the interest rate. Doing this will let you know where you stand.
  
• Eliminate your credit cards. Be sure that as you pay off your credit cards you close the accounts as you go. Eliminate any temptation to run those bills back up. Keep only one credit card and use it for emergencies only. If you do use the card, make sure the balance is paid in full at the end of the month. When you have finished the consumer debt consolidation process, you must make sure not to run up any more credit card debt.
  
• Get a copy of your credit report and know your credit score. Obtain a copy of your credit report and study it carefully. An inaccuracy in your credit report can cost you big bucks in higher interest rates and denied credit. If you find an inaccuracy, report it immediately to the credit reporting agency. Knowing what is in your credit report is a necessary step when starting consumer debt consolidation.
  
• Prioritize your payments. Make sure you pay off the credit cards with the highest balances first. There is no reason to be paying 18% interest in today’s low interest rate environment. Consumer debt consolidation can help eliminate your high interest credit card debt.
  
• Part of the process of consumer debt consolidation is to pay more than the monthly minimum on your credit cards, especially on your bigger balances. If you pay double the monthly minimum on your card, you will substantially shorten the time it takes to pay the balance off. Of course you will want to be sure not to charge another penny on that card.
  
• Make a budget – and stick to it. It sounds simple, but most people don’t take the time to make a budget. If you are going to get your debt under control, it is essential to rein in your spending and know how much money is coming in and how much is going out each month. Consumer debt consolidation is just the first step. You must have the fiscal discipline to not run up more credit card debt.