1. The first and most important way to work towards eliminating credit card debt is to research, and familiarize yourself with the process of debt consolidation. Basically, how it works is the creditor consolidates all of your debt into one lump sum, and then breaks the debt down into a single monthly payment. Once you enter into an agreement with a debt consolidation company or service, they recommend that you seek free credit counseling. Many debt consolidation services even provide their own credit debt counseling programs. The counselors will give valuable insight into how to make decisions in regards to lowering your interest rates, and reducing monthly payments.
2. The next step is to discuss your situation with your account representative; there will be paperwork for you to fill out, and be sure that you get a copy of everything for your own records. Your paperwork will be carefully reviewed, and then the representative will discuss the options for debt consolidation programs available to you. It will be up to the two of you then to discuss the settlement solutions that best suit your financial needs.
3. Next, discuss your future relationship with the company; ask questions, such as, will they be available in the future for one on one assistance? Will they offer assistance in the future for organizing your accounts, contacting creditors for negotiating lower interest rates, and monthly payment plans? Is it possible they can offer assistance with waiving your late fees or interest rates?
4. Once you've discussed all the finer points of your relationship with the debt settlement program, all your accounts will be consolidated into a single monthly payment. Don't be surprised if the company prefers that your payment is automatically deducted from your bank account. This will help you maintain a good financial relationship with both the companies you're paying off, and make your payments on time.
5. Lastly, be aware that you will be charged a fee; debt consolidation isn't a free process for either you, or the people conducting the process. The charges are usually just under $100 per month; however, you should review the terms of your agreement for any hidden interest fees. But primarily, it's almost an automatic weight off your shoulders to have a debt consolidation company assisting you with organizing your finances, and taking care of your debt.