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When combined with a strategy to reduce expenditures, consolidation of credit card debt is regarded as one of the most effective measures which can be taken for reducing and eliminating excessive credit card debt.

Credit card debt consolidation (also referred to as balance transfer) is the process of consolidating debt from multiple credit cards cards with a higher APR to credit cards with a lower APR (ideally one or two cards).

Credit card debt consolidation can also be accomplished by obtaining a bank loan (at a lower interest rate) and using it towards paying the debt on the higher APR credit cards. This loan is then paid-back to the bank in the form of monthly installments.

Whatever method you adopt to consolidate your credit cards, APR will always be the key. However, there is a catch that you must be aware of when making a plan to consolidate credit card debt. The low APR rates advertised by most credit card suppliers are the short term APR rates which are meant to lure you from their competitors.

Take some time to properly analyze the offers from various banks and credit card suppliers. Check the time period for which 0% APR is being offered and also the APR that would be applicable after the lapse of that period. Generally, 0% APR will apply for an initial period of less than 12 months or some other period after which time the APR rate increases. So, if you’re planning on paying off a considerable amount of debt in that time frame then this approach will work, even if the APR (post 0% period) is a bit higher. However, if that is not the case, the long term APR is going to be the most important thing for you to consider.

Before you move on to consolidate credit card debt it’s important to understand that consolidating credit card debt will be beneficial only if you pledge to adopt and follow a disciplined approach to controlled spending.

Looking for a solution to a problem with excessive credit card debt?

Well, the way out begins with meeting your credit card debt head on with a strategy to eliminate it completely.

There are many ways in which you can eliminate credit card debt and no shortage of advice. However, here is a simple step by step account of what you can do to begin to reduce and eventually get rid of your credit card debt.

1. Take stock of the situation i.e. draw up a table with the following fields: credit card name, balance, payment due day, APR, reward points earned, redemption offers applicable for your reward points balance, remarks.

2. Fill the table with data from your various credit cards.

3. Figure out which credit card is contributing the most to your overall debt i.e. highest APR and highest balance.

4. Check if reward points can be used to make partial payments or cover any kind of fees or if the points can be bartered for something you need (spending less means preventing credit card debt from getting worse).

5. First eliminate debt on the credit card that is contributing the most to your credit card debt.

6. Practice controlled and healthy spending habits (after all you are looking to get rid of your credit card debt not aggravate it) .

7. Look for alternative means of adding to your income (more money means earlier termination of debt).

Remember this is just one of the ways to eliminate credit card debt, you might devise your own way for accomplishing this. Any and every approach is good if it fulfills the objective.