Are you asking yourself consolidation questions? Make sure to know what the definition of debt consolidation is before trying to obtain lower rates.

In the United States, the total amount of credit card debts is more than 900 billions dollars. A lot of people can't control their spending because a card is so easy to use. That's the reason why the best tip I ever received was from a friend who advised me not to take my credit card whenever I decided to do some shopping. Instead, I withdraw the necessary amount a day or few hours before. That way, I only spend what I withdrew and no more. If you have credit card debt, you may want to apply this technique. It's very effective.

The problem with credit card debt is typically an unsecured debt. Unsecured means it's not secured by an asset like a home. This can be a difficult situation. Unsecured debts have higher rates and therefore are more difficult to pay. There are a few debt management techniques you can use to obtain lower rates. Debt consolidation, sometimes called bill consolidation, is one of the best.

But what's a debt consolidation program? It allows you to take a loan to pay all the loans you already have. If you use your house or your car to secure the loan you can obtain lower rates. That's because with the house securing your loan the risk for the lender is reduced. With lower rates it's a lot easier to pay. However, beware of companies offering you a too good to be true service. Sometimes they will say to you that their program is of the best in the market. What they are not telling you is that while you'll pay lower rates you also pay a higher total amount. So always make sure the total amount you will repay is not significantly higher than the initial amount.