If you are carrying multiple credit cards, then you might have considered credit card debt consolidation. It is a process by which multiple credit card payments can be done by one single monthly payment. It certainly is a humongous saving in one’s resource in terms of time, effort and interest rates etc., Here is a compilation of all that is relevant about credit card debt loan.

Benefits

• Credit card consolidation companies offer lower interest rates for an extended term period.
• With a secured consolidation of credit cards, the rates of interest might be lower.
• With an unsecured credit card debt consolidation, there is no risk of asset forfeiture.
• The chances of obtaining secured are higher than unsecured.
• A single payment at lower interest rates will ease the burden substantially than carrying and paying for multiple cards.

Drawbacks

• Even though the repayment terms are longer, a person might stay in debt for a longer period with credit card debt being consolidated, sometimes for a lifetime.
• Even though the monthly payment is lower, the total payment might be much higher than the principal amount.
• In case of secured loan consolidation, asset forfeiture risk is higher on non-payment of dues.
• In the case of an unsecured consolidation, the interest rates will be significantly higher.
• Bad Credit Score can increase consolidation interest rates for Credit Cards/Loans.

Best Credit Card Consolidation Companies

There are many big companies which will help you consolidate your credit cards. The best ten companies are :

• New Leaf Financial
• ResuceOne Financial
• Clear Advantage One
• Accredited Debt Relief
• Brite Solutions, Inc.
• DebtHelp,Inc
• National Debt Relief
• Pacific Debt, Inc.
• Timberline Financial
• Freedom Debt Relief

Warnings/Precautions

• Though, single monthly payments give relief from the several payments it is important to have discipline in money behavior.
• Indiscipline might lead back to where it started all over again.
• Credit Card/Loan consolidation must not be mistaken/interchanged with Credit Card Debt Settlement or Credit Card Debt Elimination.
• It is important to distinguish between the real and fraudulent debt consolidation companies.
• Credit Card is topping the list in the complaints from the consumer to the Federal Trade Commission(FTC).