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Are you contemplating credit card debt consolidation? There are many reasons why people today find themselves in a position where they are unable to pay their monthly credit card bills. Maybe you have too many credit cards because you were irresponsible and fell prey to the idea that you are entitled to have anything you want when you want it, even if you don't have the money to pay for it. Perhaps you are the victim of unforeseen circumstances and you lost your job or your business went under and now you are stuck with the credit card debt.

Whatever the case may be, you don't need someone to tell you how bad the situation is. You already know that. What you need are some constructive solutions as to how to proceed with credit card debt consolidation. Consider the following four options, as they are the best ways you can work towards getting out of debt without being taken advantage of by debt consolidators.

1. Negotiation (The best credit card debt consolidation option)

Most consumers don't realize that they are capable of their own credit card debt consolidation. You can work with your credit card companies to get lower monthly payments and interest rates. Somehow, the harassing phone calls and idle threats have a way of making us feel so small and insignificant that we assume they will not even negotiate with us. Debt collectors give us one option-pay now.

The worst thing you can do to begin your credit card debt consolidation is to hide. If you have been avoiding phone calls from debt collectors, stop it!!! You will get much further if you are honest and upfront. Take the initiative to call your credit card companies yourself and ask them what they can do to reduce your rate and help you get on a repayment plan. If the minimum monthly payment is too much for you, tell them how much you can afford to pay. Typically credit card companies would rather have something than nothing.

Generally we think of credit card debt consolidation as rolling all our payments into one lump sum. We assume that this is the best way to handle the situation, especially because it is more convenient. But, sometimes you can actually save more by negotiating your terms and continuing to pay on each card individually. Remember, the end goal is to pay off all your credit cards. That is real credit card debt consolidation.

2. Home Equity Loan

A home equity loan allows you to borrow against the equity that you have in your home. This is a credit card debt consolidation option to consider using because it will provide you with a much lower interest rate than your credit cards and all the interest will be tax deductible. While it will allow you to roll all your credit card payments into one monthly payment, you should be aware that there are often fees for this type of credit card debt consolidation. Most banks require a loan origination fee, which could be substantial, as well as the price of an appraisal and title insurance.

3. "Cash-Out Refinancing"

This credit card debt consolidation option is similar to a home equity loan. Basically you would be refinancing your home for a higher amount than what you owe and then using the liquid cash to pay off your credit card debt. While you will be able to make one low monthly payment, the total interest that you pay over the 15 to 30 year period could be substantially more. So, this should probably be a last resort option for credit card debt consolidation.

4. Auto Refinance

Your auto loan is another source of secured debt that you may be able to access if you owe only a small amount on your vehicle. Many people don't realize that they can borrow against their car. Be careful here though, if you increase the amount of your auto loan and become "upside-down" in your car, it could be a problem in the event that you need to replace the car.

While credit card debt consolidation is never fun or easy, you will be doing yourself a huge favor by facing it head on. Now that you have read this article, decide what your best course of action is and make the necessary contacts today. You will definitely sleep better at night when those harassing phone calls have stopped. Begin the process of credit card debt consolidation today.