This will mean that the portion of your outstanding account balance that is subject to a lower interest rate will be paid off first and that you will not gain the benefit of any interest free period until the full balance (including any balance transfer) is paid by the due date each month.If you find your debt load and monthly payments overwhelming, you may want to consider consolidating your credit card debt.Study all interest rates and fees associated with your current debt so that you can target the credit cards with the highest rates first.If you cannot pay more than your minimum payments on your various lines of credit, you are a candidate for credit card debt consolidation.The first is the kind you describe, where you apply for a personal loan, preferably one with a relatively low interest rate, and then use the money from that loan to pay off all your credit card balances at once.Once all of your other accounts are paid in full, there is only one payment to make every month – the one to the new lender.Overwhelmed with a blizzard of monthly bills, many people look at consolidation as an alternative.Streamlining debts can be a useful way of managing an unyielding financial burden and lowering costs, but it's not for everyone.

Before you take the plunge, examine your current financial situation to see if another strategy better serves your needs and goals.

Before making the move toward consolidating debt, you should thoroughly study your current financial situation.

Financial author Suze Orman offers a guide for people managing their debt that recommends negotiating the best credit card interest rate, even if you have to switch cards regularly.

Consolidating debt with a loan could reduce your monthly payments and provide near term relief, but a lengthier term could mean paying more in total interest.

When people mention debt consolidation, they are usually referring to one of two different methods.