Personal finance is a lot like chess.  Each game requires good strategy and calculated decision-making to win.  Make a careless move with your money and you could wind up heavily in debt.  If you find yourself in this kind of jam, consider a debt consolidation loan.

Debt is a dilemma for countless Americans.  Unable to resist the temptation of the shopping mall or the mail-order catalog, they accumulate thousands of dollars in credit card debt.  Unfortunately, this burden isn't easy to erase.  The only way to get back on track is to make some smart, long-term moves, such as using a debt consolidation loan.

Big balance, big problem

Much of the allure of plastic is the credit limit.  Credit card companies are happy to extend thousands of dollars in credit to consumers.  For impulsive types, this temptation may be too much to resist.  They flock to the shopping malls and spend, spend, spend, knowing that they only have to make a minimum monthly payment when the bill comes.

It's this minimum payment that could lead to financial ruin for cardholders, because it only covers interest charges.  It never whittles away at principal.  With interest rates on plastic at 10 percent and higher, you could wind up paying enormous sums of money to a card issuer over your lifetime.

Carrying a high balance can have a negative impact on your credit score, as well.  Credit bureaus determine your score by calculating late payments and the number of accounts you carry.  They also consider how much debt you have, and your overall credit limit.  If you've maxed it out on a number of cards, the bureau may determine that you're carrying too much debt.  Your score will plummet, and you'll have trouble securing credit down the road.

Digging out of debt

Relieving yourself of a heavy debt burden should be your top priority.  The faster you're out of that double-digit interest, the better.  The best way to pay down your debt is to stop spending on new items.  Instead, focus all your efforts on paying off your plastic.  It will be a long and arduous process, but it will be the most prudent path in the long run.

If you can't afford to take big chunks out of your monthly budget, consider a debt consolidation loan.  This combines all of your outstanding balances, including credit card debt and personal loans, into one instrument-typically, a second mortgage.  

Battling your way out of personal debt requires great willpower and focus.  By readjusting your spending habits and making use of a debt consolidation loan, you can whittle away at the enormous mountain of debt you've created.  It's the best way to zap your credit card's high interest rate and get yourself started on the road to financial recovery.