Note: This is a guest post by Debt Consolidation Care ^[2]. If you would like to guest post here at The Wisdom Journal ^[3], please use my guest post submission form ^[4].

^[5] Recent studies have shown that credit card ^[6] debt is a major problem with Americans today. The average American has a credit card ^[6] balance of around $8,000 USD spread over several store cards and multiple credit cards. As a result of this high debt load, many people are opting for credit consolidation ^[7] to combine all of their credit card ^[6] bills into one fixed (more affordable) monthly payment.

Credit consolidation can save the average person a serious chunk of money because interest rates on credit consolidation loans are as low as 6% whereas the interest rate on credit cards ^[6] can be as high as 24%.

Credit consolidation tips and traps

Although many financial institutions can provide a credit consolidation loan ^[8], there are loads of traps you should be aware of. Here are 5 credit consolidation tips and traps you must know: