When it seems as if most of your income is going to cover outstanding credit card debt, you’ve entered a no-win situation. Often in this situation, in order to meet your obligations, the majority of your paycheck goes to paying at least minimum payments on your cards. That leaves you with no money for food and other necessities, so you use your cards and accumulate even more debt. If this sounds familiar, then perhaps it is time to consider consolidating credit card debt and easing the strain on your monthly budget. Here are some tips on how to get help with the consolidation.

Before you can ever obtain any type of loan to consolidate debt, it is imperative that you get a firm grasp on your actual financial state. Often, the best approach is to pay a visit to a financial counselor. The counselor can look over your current expenses and compare them to your net income. Chances are the counselor will also look into your incidental spending on little things, such as snacks from a vending machine. While this activity can be very sobering, it is the first step in consolidating credit card debt, since you need to understand what you must do in order to strike a balance between honoring your debts and having cash on hand to spend for necessities.

With the specifics of your financial situation clearly identified, your next step is to begin investigating different debt consolidation options. For most people, there are three basic options: get a personal loan from a friend or relative, obtain a secured loan from a local bank, or work with a finance company that specializes in credit card debt consolidation.

While a personal loan may seem like your best bet when it comes to consolidating credit card debt, that is not always the case. Friends and relatives may be reluctant to have you commit to measures designed to prevent the accumulation of more debt while you are paying off the loan. This means you may soon have double the debt as you run up the balances on your cards a second time. When you also consider that you run the risk of damaging a treasured relationship, this option does not seem quite as attractive.

Another approach is to talk with your banker about a secured loan. Assuming you have an asset that the bank finds acceptable as collateral for the loan, the advantage here is that you may be able to get a lower interest rate through your bank than with some finance companies. While this is not always the case, many banks today are hungry for business and are more likely to offer existing customers with decent credit a competitive rate. You may even be able to set up an automatic deduction from your checking account each month that helps to ensure you are never late with a payment.

For people who’ve waited until their credit is damaged to seek a means of consolidating credit card debt, finance companies may be the best hope of obtaining a consolidation loan. Since you are now considered a higher risk, you can expect to pay a slightly higher rate of interest. However, there is also a good chance you can get monthly installment payments that are very workable. You may even be able to double up now and then and make two or three extra payments each year. This would help minimize some of the interest due, assuming there are no penalties for early payoff.

When evaluating your various options for consolidating credit card debt, try to get the best terms coupled with the smallest installments you possibly can. Doing so will provide you with some additional wiggle room in your monthly budget, increasing the possibility of being able to cover unforeseen expenses without having to run up more credit card debt while you pay off the loan.