If rising debt and multiple credit card bills are giving you nightmares then you must have considered debt consolidation. Now you may wonder what the best way to consolidate credit card debt is. To answer that, you must know the ways in which credit card consolidation can be done.

The three ways to consolidate credit card debt are as follows.

1. Do it yourself credit card consolidation:  You can consolidate your credit card bills yourself. When you do it all by yourself you must first find out how much debt you actually have. You can then consolidate by taking out a home equity loan or you can also borrow from your retirement savings. 

2. Taking out a debt consolidation loan:  You can take out a consolidation loan to pay off all your credit card debts. The interest rates on such loans are usually much lower than your creditors will charge. It also has a long term so that you can pay it off conveniently. You pay off all your creditors with the amount that you take as loan and then you have to pay only one creditor, that is the bank or lender who has given you the consolidation loan. This greatly reduces your burden as you do not have to pay multiple creditors and you pay a reduced amount.

3. Taking the help of a debt consolidation company:  You can also take the help of a debt consolidation company for consolidation. When you take their help you are enrolled in a debt consolidation program. Your financial situation is analyzed and a fixed monthly payment is decided on. You are to pay this amount every month to the debt consolidation company and they further distribute this money among your creditors. They also negotiate lower rates of interest with your creditors and try to get your late fees waived off.

Considering the different ways it should become clear to you that, no particular way is the best way to consolidate credit card debt. If you want to pay off all your credit card debt, all at once, you can consider taking out a consolidation loan. If you think you can handle your multiple credit card bills alone and want to save on the money that you would have to pay a consolidation company as fees, then you can do it yourself. If you need professional help and guidance, then taking help from a company would be advisable. Thus, depending on your situation you can choose from the methods.