When the Christmas season arrives a majority of the public reaches for the plastic. Many times it's not one credit card but many cards, each piling up a higher balance and digging the card holder deeper in debt. Soon a new holiday tradition will no longer be people exchanging or giving gifts but consumers signing up for new debt consolidation loans.

With many debt consolidation options available the dream of replacing all of your current existing debts with a single loan sounds like the best debt solution. The intrigue of reducing the current monthly money flying out of the accounts and getting rid of the higher interest rates cards is tempting.

Are you one of the many active credit card debtors who carry the joy of giving over to the next holiday season?

As far fetched as that may seem, research shows that many credit card holders carry a balance on their credit cards from last year holiday buying spree. Carrying this balance is great for those who carry cards from stores. So beware during the holidays. Many shoppers cannot resist the temptation to save 10% on a purchase if they pick up a new store credit card. But stop and look at the numbers.

Merchants or should we say issuers of credit cards know that research tells them a card holder will spend 30% more when buying with a card. Face it - paying with cash hurts! The interest rates on these cards is often very high… and who reads the fine print?

If you spent 30% more with an interest rate in the 20% range, receive a 10% discount on your purchases for opening up an account and don't pay the balance off in a year.

You are paying a much higher amount for your purchases. A debt consolidation loan may help consumers who carry obscene credit card balances lower their monthly payments to a more manageable level. But without making a change to the buying frenzy not during only the holidays but during the year. The new holiday tradition of a loans for debt consolidation may become the new reality.