Credit cards are any easy way to get what you want when you want it, even if you don't have the cash on hand. Credit card companies make their money from customers who carry balances on their credit cards by charging interest, at varying rates, as well as finance charges on top of the interest.

Having too many loans, bills and credit cards can hinder the success of any business; it may be wise to consolidate all the debts and send out only one collective payment each month. Often times the one payment is much less than the total combined of all the debts you are paying off.

Debt consolidation is not the answer. Yes, life is full of surprises, but bills don't seem to care. They keep rolling in, even if you've lost your job, fallen ill, encountered unexpected household expenses or simply lived a bit above your means. Your financial crunch may be temporary, but your credit score can be enduring, and overdue bills can haunt you for years to come. Fortunately, there are positive alternatives to debt consolidation. Here's what to do it

If you want to decide if you should consolidate all your debt, such as credit cards, installment loans or car payments, into one combined monthly payment, your decision should be based on a few factors. Many times a debt consolidation using your home as collateral is a wise thing to do, and sometimes is can be a mistake. Or maybe you are considering taking on a loan using something else for collateral, such as a vehicle title, or possibly no collateral being used at all. In any event, you want to determine if this consolidation will help you or possibly cost you more in interest in the long run, even though you are receiving a lower interest rate on the new loan. By performing a simple analysis you will become more informed of the facts and should feel better about your decision.

Debt plagues millions of Americans. Just as damaging is choosing the wrong method to mangage debt you can't pay on your own. Use these steps to determine whether you should consolidate or settle your debt.