Debt reduction consolidation or credit card consolidation is one way to avoid bad credit especially if you own multiple accounts. Credit card consolidation can greatly lower the interest rate you\'re paying since different credit card issuers impose different charges.

Consolidating your credit cards also allows you to keep track of your accounts and avoid delays or late payments. Paying bills become more convenient because you\'ll be submitting your payments to a single biller. Let\'s discuss important pointers about credit card consolidation:

1) Consolidate only high-rate credit cards. If your credit card has low interest rate then you don\'t have to include it in a consolidation program. Stick on consolidating high-rate accounts so you can have an easier time paying off your balances.

2) Choose a consolidation company wisely. Be aware that some credit consolidation companies may take advantage of their clients. Before choosing a consolidation company, do extensive research about the company\'s background, reputation and its system.

3) Make sure that it\'s all in the contract. All terms and conditions between you and your debt consolidation company must be stipulated clearly in your contract. Read and understand the agreement before signing it up.

4) Shop around for rates. Consolidation companies have different charges for their services. Make sure that you are aware of the exact costs of their services before consolidating.

5) Create a budget plan and sticking by it. Do not forget that debt consolidation will only work if you pay your bills on time. Consolidation would be a waste of time and money if you continuously delay or miss on your payments. It is up to you to create an effective budget plan and to stick by it. Of course, it would also mean controlling your spending, making some adjustments in your expenses and dividing your monthly income appropriately.

6) Make sure that your consolidating company is submitting your payments. See to it that your consolidating company submits your payments to all your creditors accordingly.

7) Make sure that your payments are reported to the three major credit bureaus. Your consolidation company must guarantee that all your payments are reported to the major credit bureaus to ensure the improvement of your credit score.

8) Stay away from consolidation agencies that promise to \"fix\" or \"repair\" your credit report. There is no instant way to\"fix\" or \"change\" your credit status except to become a better payer and more responsible borrower.

9) Be aware of your debts. Ordering a copy of your credit report enables you to personally check the status of your accounts. It helps you ensure that you are making progress with your debt consolidation efforts.

10) Learn from your experiences. Remember that debt consolidation is only the first step towards being free from bad debt. You will still need to continuously keep up with your efforts to pay your debts responsibly and to avoid incurring new debts that you can\'t afford. Live within your means and know the value of being a responsible borrower.