Top Ten Things To Do Before You Consolidate Credit Cards

Planning to consolidate credit cards…hang on until you do these…

1. Find out why - Think about it this way: ignoring the past can doom us to repeat it. Write down the reasons why you are needing to move to credit card debt consolidation.

What did you spend (or overspend) on? What categories were the highest percent spent? Vacation? Holidays? Food? Entertainment?

Identifying the categories is the first step you’ll need to lay the groundwork for consolidation later.


2. Understand water temperature - Now, before you dive in to this, find out what others have done and learn from them.

Studies have shown that most people who actually reach credit card consolidation, simply continue using their credit cards afterwards, and as a result, end up more deeply in debt.

Is this going to happen to you?

What could you do so that it doesn’t? Hint, hint…no magic here - see categories you identified above.

3. Develop a goal- Now that you know the risk, it’s time to know where you want to go.

What is it you want to achieve when you consolidate credit cards?

What is your goal? What will tell you if you did?

Write it down and store it in a place that you’ll see often such as a board close to your computer screen at your office.

4. Develop tactics/to do list - Now that you know where you want to go, you’ll need to write down how you’ll get there.

Think of some things you’ll need to do such as finding out your credit score before you consolidate credit cards.

5. Research/Learning - You are actually doing this right now. Go out and learn at least the basics about what happens when you consolidate debt and what are the secrets.

This website is dedicated to that and has helped many people (commercial ends here) but there are other very good, educational ones as well - again, information is power - it’s your choice to go out and get it.

6. Find/Review Options- How will you consolidate? You have the option of consolidating into a new credit card, taking out a home equity loan, or establishing a line of credit.

There are many choices, which one is right for you?

Credit card consolidation into a new card is the easiest to figure out, but if you own a home, you'll have more choices. Learn about each one before you consolidate credit and get to know the pros and cons.

7. Select Option - Once you do your homework on all the options, select the best one for you and your family - keeping your goals in mind.

8. Find/Review Candidates - Now that you know what option you want, it’s easier to look for candidates (lenders, banks, etc.).

This is important, because some candidates may be very good for lines of credit but do not offer the best credit card solutions.

Focus only on the candidates that are strong and are making good offers in the option you chose.

9. Select Candidate - Once you’ve compared candidates and come up with one or two, select the best one for you.

Consolidate credit cards and move forward confidently, you’ve done what a lot of people do not - prepare.

10. Measure it- Given the allotted time you gave yourself to achieve your goal, how is it going?

What are some of the things you didn’t think about?

Hopefully, you’re able to keep track of your spending and maybe reaching your goal will keep you from becoming just another statistic.