Credit card debt, as well as other unsecured debts can become a real burden if left unchecked. Spending habits, personal and family emergencies, a sudden loss of a job etc can all result in over-spending, leaving you buried in debt! There are many reasons and several options available today to help you consolidate your debt.
Bankruptcy (Chapter 7 or 13) - Filing for bankruptcy protection is a very serious decision and should only be used under the most extreme of circumstances and with professional guidance. Once you file for bankruptcy protection you will eliminate most of your debts, but a bankruptcy will also show up on your credit report for a minimum of 7 years, or more, making it difficult for you to secure good credit in the future.
Debt Consolidation Loans - Typically, debt consolidation or home equity loans come with varying interest rates and some come with large application and processing fees. It is possibly to consolidate your credit card debts, as well as other unsecured debts with this type of loan but it will also trade your current unsecured debts into one, big secured debt which is now backed by your home. If you happen to fall behind on your payments, you could lose your home. In addition, this type of option can extend the terms of your loan increasing the amount of time you're in debt.
Credit Counseling - Most credit counseling companies are not-for-profit organizations that work with thousands of creditors on a daily basis while representing their clients. They have a vast amount of experience and negotiating power which they utilize to help reduce their clients interest rates and late fees.
