Excessive credit card debt is a nightmare of a problem. Unfortunately, there are a lot of people today who are trapped in this predicament. How do you work your way out of extreme debt? Credit card debt consolidation is generally regarded as the most important step in reducing and eliminating your credit card debt.

Credit card debt consolidation is a strategy to consolidate debt from multiple credit cards into fewer credit cards (ideally just one or two). This process is also sometimes referred as a balance transfer, where you pay off the balance on one credit card by transferring it to another card with a lower interest rate.

You can also consolidate your credit card debt by applying for a bank loan at a lower interest rate than your card issuers are charging, and using that to pay off the debt on the higher APR credit cards. The loan is then paid back to the bank in the form of monthly installments.

As you have probably noticed, a lot of credit card suppliers and banks have a never ending stream of attractive offers for credit card debt consolidation, often as low as 0% APR. However, playing the balance transfer game is serious business and you need to exercise caution so that you don’t get into deeper trouble.

When considering consolidation, start by analyzing the various promotions currently being offered by the banks and credit card issuers. Remember that the low interest rates advertised are designed to lure you in, and are only offered for a limited period of time. Check the time period for which 0% APR is being offered and also the APR that will be applicable after the lapse of that period. Also, check if there are any processing charges.

Generally, 0% APR is valid for a 6 to12 month period only. So, if you are confident of paying back the debt, or at least a large part of it, in that period, this will work for you even if the APR (post 0% period) is a bit higher. However, if this isn’t the case, the long term APR is going to be the most important thing for you. If the long term APR is more than the APR for your current credit card, this kind of balance transfer won’t be very advantageous.

Before switching cards, check with your current credit card supplier and see if they can offer you a lower APR in order to keep you as a customer. Frequently, they will agree to your request.

Along with consolidating your credit card debt, it’s also important that you rein in your spending habits. Otherwise, you’ll end up back in debt, possibly in worse shape than you were before.