When you consolidate credit card debt, you combine multiple credit card balances into a single debt. You might use a personal loan, for example, or a balance transfer card.

There are several reasons why debt consolidation has become such a popular financial strategy:

For many people, the psychological benefits are just as important as the financial ones -- having a clear, single target to focus on can be incredibly motivating.

Let's say you currently have three card cards with balances, each of which requires 2% of the balance as a minimum payment:

You're on the hook for $200, and those are only minimum monthly payments, which means interest will continue to accrue at high rates.

Assuming you don't add any more debt to your balances, it could take years and thousands of dollars in interest to pay them off. The $3,000 credit card, for example, would take over six years to pay off if you're only making minimum monthly payments and the APR stays at 15%.

With the average credit card interest rate currently being 24.28%, many people end up paying significant interest.

Instead, you could use a balance transfer card and move all $10,000 of the debt there, after paying a $300 balance transfer fee.

You have 16 interest-free months, meaning that everything you're paying goes right to the principal and your debt doesn't accrue more interest during that time. This could help you make significant strides in paying down the debt completely or partially before the interest -- which is lower than most credit card APR rates -- clicks in.

If you're considering consolidating your credit card debt, let's discuss five good options to consider.

A balance transfer card allows you to move existing credit card debt to a new card, often with a 0% introductory APR period that can last 12 to 21 months. This option works best for people with good credit scores who can qualify for these promotional rates and pay off the debt during the introductory period.

Personal loans specifically designed for debt consolidation offer fixed monthly payments and terms, typically ranging from two to seven years. These loans are offered by traditional banks, credit unions and online lenders, with interest rates based on your credit score and income.

Home equity loans allow you to borrow against the equity of your home. You'll receive a single lump sum, which can be paid back according to the loan's terms.

Home equity lines of credit open a line of credit that you can access during the draw period, which is typically around 10 years. After this, you can pay off the debt in the repayment period, which is often 20 or 30 years.

Both home equity loans and HELOCs typically have much lower interest rates than credit cards. However, these options come with significant risk -- you could lose your home if you're unable to make the payments.

Credit counseling and nonprofit agencies can help negotiate lower interest rates with your creditors and set up a single monthly payment plan. You'll make one payment to the agency, which then distributes payments to your creditors according to the agreed-upon plan.

This can be a good option for borrowers who don't have high enough credit for other types of loans or balance transfers.

Borrowing from your retirement savings should be considered a last resort, as it can significantly impact your long-term financial security.

While you're technically borrowing from yourself, you'll miss out on potential investment growth. And, if you leave your job, you may need to repay the loan quickly or face penalties.

Choosing the best debt consolidation method depends on several personal factors that you'll need to honestly assess. These include the following:

Consider creating a simple comparison chart that lists each option with the associated costs, monthly payments, and timeline to help you visualize which choice makes the most sense for your situation.

There are both pros and cons to consider with debt consolidation. Here's a quick overview:

Getting started with debt consolidation doesn't have to be complicated. Follow these six steps:

Debt consolidation can be a powerful tool to help you get debt-free -- but only if you leverage it correctly. Here a few tips that can help you do that:

If you choose to consolidate your debt, make sure you watch out for these potential mistakes: