I am in a total of $23,000 in debt from 3 credit cards and a personal loan.

I make 47k a year and in 4 months I get a raise to 56k when I finish my traineeship.... my salary should continue to grow each year.

Should I consolidate my debts ?

Will this harshly affect my credit score ?

I can be really good with money for one month but then the next month lose it and go blow a heap of money on rubbish.

Hi Mr Person,

I'm unsure exactly as to how consolidation would effect your credit score, but I wouldn't imagine that it would have too much of a negative effect as you're taking positive step towards reducing your debt.

You can at least consolidate your credit card debts into just the one credit card by carrying out a balance transfer onto a different low interest credit card.

There are plenty around these days that offer really low interest rates (some that are even ongoing) for both balance transfers AND purchases, so your over all costs on your credit card bill will go down, as well as your savings on annual fees will increase.

Hope this helps.

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Greer L.
Product Researcher
The Credit Card Guide
www.thecreditcardguide.com.au

I think that before you make the final decision then look at all your options - for example consolidating may not be the best option for you but maybe an IVA or something similar to that may be good - speak to someone who specialises in this area before you give the go ahead.

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