If you are like most, the high interest associated with your credit card debt is eating an unwanted hole into your pocket and finances. And with high-interest rates on the rise yet again, that hole is about to get bigger. So, what can you do to eliminate your credit card debt and stop paying all of that ridiculous interest?

The answer lies in debt consolidation. When you consolidate your debts by taking out a debt consolidation loan or second mortgage, you get the money to pay off all of your high-interest balances. In return, you get to pay off that debt with one payment each month on a loan that has a much lower interest rate than you are paying right now.

How much can a lower rate save you? Well think about it this way. Most credit card companies charge anywhere from 21 to 30 percent in interest. On a $2,000 credit balance with an interest rate of 29 percent, you would pay nearly $50 per month in interest alone. That doesn’t include any money to pay down your debt. And if you only make your minimum payments each month, it might be a long time before you see that debt come down.

Over time, this interest can add up to hundreds or maybe even thousands of dollars depending on how much debt you have and how much you pay on your principle balance each month.

With a consolidation loan you can save as much as 10 percent or more on interest. That in itself can add up to quite a chunk of change. But a debt consolidation loan also puts more of your money toward the principle balance so you get out of debt quicker than you ever thought possible. And that quick payoff means that you will pay even less interest over the course of your loan.

So, if you are struggling under a heaping amount of credit card debt, start digging out today. Stop paying high interest and put that money back where it belongs: in your pocket.