Majority of the debts of most individuals are made up of credit card balances. When you know that you have huge credit card balances, then you should seriously consider a credit card debt consolidation program. This way, you can be certain that you won't disregard your monthly credit card bills like most people who have tons and tons of debts to take care of.

1. Credit Card Debts - Not a Priority

What are the reasons why an individual can have huge credit card debts? First, he might be a big spender, someone who usually spends more than what he earns. Another reason might be the fact that he is a victim of the nationwide economic recession. Maybe he lost his job. Some also blame the excessive interest rates, balance transfer rates, and other fees that credit cards carry. However, based on the recent survey conducted by GfK Roper Public Affairs & Media, "When money is short, credit cards are last to get paid."

The survey was conducted via phone calls among 1,004 adults which were chosen through random digit dialing. According to the reports published, "When finances are tight, nearly six in ten individuals (about sixty percent) would pay their credit card bills last." The survey also showed that majority of the survey respondents - about 52 percent - would pay the mortgage first, and 38 percent noted that they will pay for utilities before they settle any of their other financial liabilities.

2. Implications of the Study

The study only implies that credit card debt consolidation is definitely needed by individuals who have to set specific debt repayment plans so they can make sure that each and every financial obligation will be taken care of.

With the help of a debt counselor, the debtor will receive proper guidance in managing his personal finances. The debt counselor can negotiate with the creditors and make sure that appropriate modifications in the original debt repayment plan can be made. They can then choose a specific repayment date that is in line with regular compensation schedule.

A credit card debt consolidation plan may also include the process of collating all of the person's outstanding debts into a single loan. If not, the amount of the financial liabilities will still be summed up into one credit problem which the debtor will have to pay - regardless of his preferences. This means that the debtors will send their supposed monthly repayments to their counselors, which will then allot the appropriate payments for each of the creditors. This way, credit card debts will not be left out.

3. Crisis Heightens the Need for Consolidation

Wrong debt priorities often lead to mismanaged finances and huge overdue debts. As shown also in the study, delinquencies in credit card debt repayment will definitely increase as the financial crisis of the country worsens. This is because employment and income are the main factors that affect the ability of debtors to repay their liabilities.

"Consumers continue to struggle amid a rapidly deteriorating employment situation and from declining property values and other measures of wealth," says Mike Dean, Managing Director of Fitch Ratings. Because of the worsening economic recessions, more and more debtors are bound to disregard their credit card debts. To prevent more inflated credit card problems and to promote proper debt prioritizing, financial planners recommend the use of credit card debt consolidation programs.