Credit card debt is a growing national problem. Several companies report that over 50 percent of credit card accounts are 90 days or more past due. For those who have overextended spending with credit cards, a credit card loan consolidation program might be the answer to resolving the debt in a more affordable manner.

The goals of credit consolidation programs are to combine the credit card debts and generate one affordable monthly payment. In most cases, this debt can be paid off in just a few years (about 3-6 years in most cases). Consolidation often qualifies for lower interest rates based on the amount of the combined debt.

Before you agree to consolidate, always do your homework to make sure the new loan isn’t costing you as much or more than the individual loans were. There are disreputable companies out there that will try to avoid giving you the best rate, so shop around before making a decision and don’t sign on the dotted line in an emotional moment only to regret it later. By figuring the total monthly payments you are currently making you can easily compare that to the proposed consolidation amount, thus determining which the best option for you is.

Once a consolidation loan program has been chosen, payments need to be made as scheduled. A single payment is made on the consolidation provider and the provider of the consolidation will pay the creditors on your behalf. These payments must be made on time!

Late payments will put consolidation loan status in jeopardy and creditors may resume collection activities. This can also result in an increase in the loan interest rate. Frequent communication with the assigned credit counselor (or “consolidation specialist”) is vital so that problems or changes can be addressed quickly. This will prevent the account from being returned to collections for payment.

While it is the consolidation program which will make the loan payments, reviewing monthly statements for accuracy is your responsibility. A reduced interest rate should be reflected in the statements and the account should no longer accrue late fees or other charges. If there are inaccuracies and incorrect payment amounts, contact the assigned counselor so these issues can be addressed. This will ensure that the company is paying creditors the correct amount and avoid future problems.

There are quite a few different debt consolidation loans, and the right one for you will depend on your specific situation. Some loans have a higher monthly payment for a short period of time while others offer a lower payment spread out over several years. Let common sense prevail here and look for the loan with a monthly payment you can afford.

Some companies offer a fixed interest rate and disallow making extra payments over time. If at all possible, find a loan consolidation program that will allow you to pay more when you can!