Consolidating credit card debt your own

Types of debt vary, and this influences what you can consolidate.The first thing to determine is if your debt is secured or unsecured. For example, car loans and mortgages are secured debts.Furthermore, if you have bad credit, debt consolidation loans may come with high interest rates.In addition to putting your home at risk, many consumers end up prolonging their debt.Most often, the required collateral is a second mortgage or a home equity line of credit.

Debt Consolidation is worth looking at if you have at least ,500 of debt.Many of these options work hand in hand with or as part of a larger debt reduction program, but in general, these are your choices: Debt Settlement: Settlement is the process of negotiating with your creditors in hopes of reducing the total amount of debt you owe them.While you can undertake this process on your own, many people choose to hire a professional debt settlement company or lawyer to negotiate on their behalf.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.

Consolidating credit card debt your own