We’ve all undoubtedly heard time and time again about how important our credit score is to our financial wellbeing. In essence, a credit score is a number assigned to our financial trustworthiness – a number that creditors look at when determining if they should or should not extend us credit. The credit score is determined by information on our credit report – our financial history so to speak that tells of our track record in borrowing and paying back money. Our credit scores are consulted every time we apply for a credit card, take out a bank loan, purchase a car, and buy a house. Our credit score can determine how much financial control we have in our lives and any negative impact to it can affect us greatly.

Debt, in and of itself, does not necessarily impact our credit score negatively. As long as we are paying our debt on time and the debt does not surpass our income, we are in good financial standing. But for most of us who struggle to make ends meet on a monthly basis and wind up leaning on credit in order to help us get the job done, debt not only accrues, it takes over. The more we debt we incur on the credit card, the more our payments increase. And the more the payments increase, the harder it is to pay more than the minimum payment. If we have a high-interest credit card, the interest rates alone can have us paying on the credit card for a lifetime. And as we slip further and further behind on paying down the debt, we enter a cyclical process that can have negative financial impact on our household and damage our credit score.

A credit card consolidation can be enormously helpful in putting you back in control of your finances, as it allows you to transfer the balances of your high-interest credit cards onto one low-interest credit card. This one manageable payment offers you a focused opportunity to pay down the principal of your debt, thus showing on-time and aggressive payments which positively impact your credit score.

A credit card consolidation can be done in a number of ways. You may choose the previously mentioned transfer from one credit card to another. Or you may choose to take out a personal loan that will cover a credit card consolidation, thus eliminating credit cards altogether and focusing your payment into one loan that you have hopefully acquired with a low interest rate.

No matter which credit card consolidation that you choose, debt relief will be your reward. And with more controlled debt, your credit score will realize the benefits as well.

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