While having one low rate and one payment is an attractive option, many people end up in similar or worse financial situations when attempting credit card debt consolidation.According to Cambridge Credit Corp., a nonprofit credit-counseling agency, 70 percent of Americans who take out consolidation loans end up with the same or more debt after two years.Debt Consolidation: Consolidation is the process of combining all your debts into a single, lower payment by taking out a loan to pay off your creditors.Companies usually attempt to lower your debt through debt settlement before recommending you take out a loan.Debt Management Program: These programs often work hand in hand with credit counseling.
You’ll only pay fees when debt is settled successfully.
After 100 hours of researching and calling debt consolidation companies, our top choice is National Debt Relief, which is one of the most transparent companies we spoke to.
It offers top-notch customer service and its costs and fees are well in line with industry standards.
When a settlement is reached, the funds you have been setting aside go toward paying your creditors and negotiation fees.
These programs take around two to four years to complete and negatively influence your credit.