The first thing that you should do when it comes to consolidating credit card debt is to take matters into your own hands; the last thing you want to happen to you is going bankrupt. You need to develop a strict budget and talk to your creditor before you get turned over to collection agencies. Your creditors may be able to work with you on to resolve the debt. If you are already getting collection calls then you need to know you rights; do not allow collectors to lie or harass you and know their restrictions. They may only call between 8 a.m. and 9 p.m. in your time zone and you can give written notice to cease communication. If collectors do not follow their legal restrictions immediately file complaints with your state’s Attorney General, Federal Trade Commission and Better Business Bureau; you also have the right to sue your collectors if you feel it is necessary.

When looking for companies to help you consolidate your debt you need to be extremely cautious of whom you are doing business with. There are a ton of scams out there and a lot of people are dying to steal your precious information and take advantage of your vulnerabilities. The Better Business Bureau of Denver, Colorado offers some great advice of how to avoid scams. They suggest not to do business with companies who demand financial details and account number before going over its services and fees, give too good to be true statements, claim they can erase negative information from your credit report, won’t give their contact information and who require an immediate decision.

Credit card consolidation programs should only take all of you debt and make it into one monthly payment with one interest rate and help you manage your finances better. Some may also offer a budget plan for you to use.

Try to go with a free service that will go over your debt with you and that can refer you to beneficial companies. Non-profit organizations and those who are more willing to help you rather than them tend to be more reputable. Again, watch out for scams. People will prey on others in any way they can; just because a consolidation company says that they are non-profit, of some religious affiliation or free does not mean that they are really there to help you.