When you are facing a mountain of credit card debt, many people get confused and overwhelmed with all of the information that is out there to "help".  Over the last year or so, we added many posts to this blog about various options for Credit Card Debt Elimination. 

I thought it might be helpful to pull together what I find to be the most helpful posts on your best 3 Credit Card Debt Elimination Options:

#1 If you can keep up with your current payments, you should try to eliminate your debt with a Debt Snowball.  Click on the link below to read a post about what a Debt Snowball is and how to use it.

What is a Debt Snowball?

#2 If you have fallen behind on your debts, but would be able to keep up with your payments if you could just get caught up, Debt Consolidation may be your best Deb Elimination option!  A Debt Consolidation program can help reduce your monthly payments, lower the interest rate your credit card companies are charging, and put you on a "level payment plan" to get you out of debt FAST!  Click on the link below to read a post all about what a Debt Consolidation program can do for you.

Debt Consolidation Program vs Debt Consolidation Loan

#3 If you have had a drastic change to your monthly finances (loss of job, divorce, illness...) or if you are behind on your credit card or other unsecured debt payments by more than a couple of months, Debt Settlement is probably going to be your best option. Click on the link below to learn about Debt settlement and how it can help you reduce your monthly payment, get rid of interest and fees altogether, and eliminate your debt for HALF of what you owe!

Debt Relief Options: Why Debt Settlement May Be Your Best Choice

If you still have questions about the options available to you, or if you want to find out how to get started with these programs, our Debt Solution Specialists can help.  Feel free to ask a question in the comment thread below, call our toll-free number, or click on the button at the bottom of the page for a FREE DEBT ANALYSIS!  We are here to help find the right solution for your situation.

1-877-492-4109

With all the terminology that is being thrown around today, it is easy to understand how you might become confused with the difference between a Debt Consolidation Program and a Debt Consolidation Loan.  

Are they the same thing? NO

Debt Conoslidation Loan

• In general terms, a Debt Consolidation Loan refers to the action of combining several smaller debts into one larger debt. This usually creates a lower interest rate and a fixed monthly payment. However, it is important to fully understand the implications of choosing a debt consolidation loan to pay down your debts. Do you have equity in your home? In today’s market, housing values are falling. Is it wise to put your home on the line to pay off credit cards? Consider this, credit card debt is considered unsecured. This means that the only collateral underwriting your credit card balance is your signature. By using your home equity to pay off your usecured credit card debt you are turning it into secured debt.  If you get behind, you could lose your home.

• Second mortgages and home equity lines of credit usually carry long terms, so while your interest rate may be lower, you pay it over a long period of time. You may end up paying more over time.

Debt Consolidation Program

• Debt Consolidation Program Counselors negotiate with your creditors to accept a smaller monthly payment over 48-60 months. Most major creditors have pre-set agreements with Debt Consolidation Programs as to what percent of a balance they will accept at what interest rate. This payment and lower interest rate can save some you hundreds of dollars per month. Not only that, but with a level payment plan (paying the same payment each month) you can be debt free in four to five years You can always pay more if your circumstances change which will get you out of debt even sooner!

• Through a Debt Consolidation Program, your credit card accounts will be re-aged.  This simply means that your accounts are brought back to current status, so you are no longer behind. This will put a stop to the accumulation of late fees and will STOP COLLECTION CALLS! 

• Your Debt Consolidation Program Counselors will also arrange for one monthly payment to be withdrawn from your bank account automatically. At that time a pre-arranged payment is dispersed to each of the creditors in your Debt Consolidation Program. As you pay off your creditors, and work towards being debt free, the remaining credtiors get a larger payment, while your monthly payment remains the same.

Although these two options appear similar on the surface. There are some very key differences that you need to understand before making your final decion.  If you still need some assistance in deciding which is the right choice for you, our Debt Consolidation Counselors are happy to discuss your current situation and point you in the right direction.