Building healthy money habits is tough, especially if you have old credit card debts to pay off. It can be a very frustrating cycle to go through as you try to bring your finances up to where you would like them to be.

But getting rid of credit card debt is one of the best things you can do for your personal finances. And the article I’ve linked to gives a very basic example of why you should do more than make your minimum payments whenever possible. It doesn’t take any but the most basic of factors into consideration, but the principle of their calculations is sound.

As they say, even paying back a little extra each month will make a difference in the long haul. It may not seem like a big difference, but especially if you are paying interest the difference will be huge. Read the article if you need to know more details about it.

Sometimes your financial needs will get you to where you are considering debt consolidation. There are advantages and disadvantages to this. The advantage of course is that your monthly payments will be smaller. This can be a huge help when you’re really struggling.

The disadvantage comes into play with the typically higher intersest rates and longer loan terms. Consolidated debts generally cost you a lot more money overall. But when you need the help, it can be the best option.

Of course there are other things you should work on first with your personal finances. Work out a good budget. See if you can live on your current income or if you need to make serious cuts. Figure out what’s working for you and what is making things worse. If you can work these things out before needing debt consolidation, so much the better for you overall.