Consolidation of credit card debt is one of the best ways in which you can get rid of credit card debt. You will see a lot of advertisements from financial eagles and credit counselors as to how you can cut down your interest rate and save those precious dollars with the help of debt consolidation.

No doubt, consolidating your credit card debt is helpful. However, it does come with a price. It is actually a repayment concept that works to your advantage if you adhere to a certain set of rules and guidelines. Here are some of the important things that you need to know before consolidating debt:

1. Find the reason: You should aim to nip the problem in the bud so that it does not recur again. You should take advantage of the debt consolidation plan with the foresight that you do not find yourself in a debt trap again.

2. Save for the rainy day: There comes a time in our life when we are caught unawares. There are emergences in life, tragedies, a job loss or natural disasters that will trigger a huge amount of expenditure, which most of us inadvertently charge on a credit card, thereby attracting a huge amount of interest rate. Make it a point to save about 10 percent of your take-home salary as a reserve to meet those unforeseen expenditures.

3. Check your overspending habits: Credit cards make us liberal with our spending. Research has found that most of us spend a lot on travel and food. Track your expenditure and use your credit card wisely. If you have time, then take a walk instead of using your car and blowing up your credit card money on gas. Your credit card counselor will give you wise tips on how you can adhere to a budget plan which will cut costs and help you stop being a slave to your credit card.

4. Planned events: Major events like wedding, honeymoon, children