Credit card debt consolidation is a topic that you had to have come across countless times. There are hundreds of sites with recommendations on credit card debt consolidation. Every now and then your daily newspaper will also have an article or advise regarding credit card debt consolidation. TV channels host discussion panels about credit card debt consolidation. Also, there are numerous financial advisors and companies that give professional instruction regarding credit card debt consolidation. OK, what is this "Credit Card Debt Consolidation" that everybody is speaking about? Why is it such an significant subject?

"Credit card debt consolidation" is about consolidation of the outstanding balance on various credit cards into a single credit card (or one or two credit cards). Ordinarily, you move from a much higher APR credit card to a lower APR card. You sometimes might wonder 'why?' If you look into how the beastly cycle of credit card debt works, you will immediately understand the logic behind it. Credit card debt gets bigger in two ways. One is because of the addition of new debt from current spending on your credit card and the second is due to the addition of interest charges to the existing credit card debt. The first one is thanks to your purchases with credit cards but the second one is due to interest charges which are calculated on the basis of the interest rate or the APR applicable to your credit card. Therefore a lower APR rate means that your credit card debt will grow at a slower rate and therefore switching over to a card with lower APR makes absolute sense.

The process of credit card debt consolidation is also referred to as a balance transfer (you transfer the balance or total debt from one credit card to another). Credit card debt consolidation (or balance transfer) offers are made even more tempting by the credit card companies by including different benefits with them. The uncomplicated logic behind offering these benefits is the fact that their new customer is defecting from one of their competitors. The biggest benefit offered by these credit card companies is 0% interest on balance transfers (or credit card debt consolidation). This 0% APR is usually applicable for a very short period of time i.e. 3-6 months, after which the market APR is applicable. Other credit card debt consolidation offers encompass things like interest free purchases for a short period, reward points, etc. These credit card debt consolidation offers make the exercise of credit card debt consolidation even more logical and meaningful.

Credit card debt consolidation seems to be a beneficial way of tackling the predicament of credit card debt and that is the reason why there is so much of discussion on the subject of credit card debt consolidation.