Credit card debt consolidation is very effective in Australia because there are still credit cards available that have quite a high rate of interest in comparison to the rate of debt consolidation loans available.

Australia has just recently started to see more credit cards coming down in interest rates which will render credit card debt consolidation less effective, however there are still many cards that do retain the higher interest rates.

Sometimes the cards that have the different types of 'rewards' programs are prone to a slightly higher interest rate. If you aren't sure what interest rate your credit card is, it may be a good idea to find out to see if credit card debt consolidation could be effective in your case.

Just make sure, like with any type of loan, that the credit card debt consolidation loan that you are applying for actually helps you move forwards in your current financial situation.

For example it would definitely not be advisable to pay off your credit card with a debt consolidation loan and then to start putting more onto it before the credit card debt consolidation loan is paid off. This will mean you've just got twice as much debt and will just make it harder and harder to manage your money.

Make sure you always read the fine print of a loan and that you do the maths to work out if it will truly benefit you.

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