Debt consolidation and credit cards

The limit of credit is based on each individuals credit up to the maximum per the card offer.  As far as giving up the other cards that's up to you. 

In my own personal case my wife and I consolidated two previous cards that we had into one that had a lower interest rate.  As long as you don't continue to run up charges on the new card this should also work for you. By getting a card with a lower rate we should have the card paid off within the next 12 months.

There are several credit card sites that allow you to compare the best balance transfer cards.  We used http://www.rightcharge.org 

I know that they are reliable plus their on-line application is secure. They made it very easy for us to get our new card.

Good Luck!

New debt is not the solution to old debt--you just dig the hole deeper.  The best way to deal with credit card debt is to pay it off using money you already have.  I have explained this technique to several different people, but I'm doing it again for you....

First, don't add to it!  Think of your credit card debt like dirty dishes!  If you are handwashing dishes and people keep bringing you more they will never get done.  The same principle applies to debt--if you keep adding to it then the debt will never get paid off!

Second, fix your minimum payment where it is right now.  If your minimum payment is $50 this month, pay $50 per month every month no matter what.  If the minimum payment changes ignore it.

Third, line up your payments from the smallest balance to the largest.  Ignore the interest rate.  The emotional payoff from paying off your first debt is huge and will make you want to keep going.

Finally (listen up--this is the big key), as each debt gets paid off add it's payment to the next one in line.  By doing this you are paying towards the actual amount you borrowed!  Most of the time your minimum payment is pure profit for the credit card company or bank.

At the same time, build up your savings so you won't have to go back into debt in the event of an emergency.  Even if it's only a tiny bit, every little bit adds up and gets you one step closer to being truly debt free.

hi...

A debt consolidator will work with the debts that YOU give them to work with. Any debts you have that you want to keep paying on and keep current you can keep, like credit cards. You only have to surrender the ones you want them to work on for you.  They will negotiate for dropping fees and less interest, etc., but it will affect your credit so its a good idea to keep one small limit card for emergencys.

Debt CONsolidation does not fix the problem, it just moves the debt.  If you don't get rid of the credit cards that got you into this situation in the first place, you will be right back in the hole again.

Forget the "keep at least one credit card for emergemcies" junk.  You need to have an emergency fund, perferebly in a money market fund with check writing abilities.  The last thing you need in an emergency is to TAKE ON MORE DEBT!  Save up at least $1000 FAST to catch the little things until you have paid off your debt.  This will be your starter emergency fund.

To add to what jessicalynneposted:

Lay out your credit cards smallest balance to largest.  Pay the minimum payments on all but the smallest balance card.  On that one, pay the minimum PLUS any extra cash that you can scrape up.  Sell stuff, sell so much stuff that your broke friends will think you went insane.  Work extra hours, whatever it takes.

Again, line then up smallest to largerst balance, not highest interest rate first.  If you were so awesome with math you wouldn't have debt, so try it this way.

When #1 is paid off, put all the money, plus any extra ON TOP OF the minimum payment for #2.  Keep going until they are paid off.

Debt CONsolidation can screw up your credit score, because some credit reporting agencies may look at this just like filing Chapter 13 (reorganization). 

Once they are paid off, add to your original $1000 starter emergency fund until you have saved 3-6 months living expenses.

For there on, you wont need credit cards ever again.  Pay cash!!!!