In order to qualify for the interest rate you need on the consolidation loan, you need a high credit score.

Otherwise, you either won’t get approved for the loan or the rate will be too high to provide the benefit you need.

However, this only works as an effective debt solution if you meet three key criteria.

what is meant by the phrase consolidating credit card debt-59

Consolidated credit, debt consolidation, debt management – you've likely seen all of these terms and more while reading about merging all of your bills into one simple monthly payment.

Sometimes these terms have different meanings, but other times they're used interchangeably.

The ideal time to get into a consolidation loan is when rates are low.

However, even as rates increase you should still be able to qualify at a good credit with a good credit score.

And depending on the context, these terms can indeed have similar meanings.

So when you're looking for a debt management program to help you get back on your feet, the muddy terminology can be confusing.

If you’re one of the millions of Americans with overwhelming credit card debt, you may have looked into a credit card consolidation loan to tackle your debt.

And while a consolidation loan for credit cards can be a good option when you have a lot of bills to pay off, there are plenty of alternatives to consider. Review your current financial picture and goals with a financial advisor or specialist certified credit counselor to determine the best plan for your needs.

The danger of borrowing more money to pay off old loans, however, is that you can start charging again on the credit cards that are now paid in full.