Credit Card Debt Consolidation - Is Consolidation Better Than Debt Settlement?

April 27, 2010 - PRLog -- Credit Card Debt is becoming a big headache for many people around us and among us. We buy credit cards because we think that with these electronic cards our lives will become easier since we will not have to keep any kind of unnecessary cash in our pocket. Credit card also becomes a magic card for you when you don't have enough money to buy a product or spend some if in emergency. People use different cards at one time for different purposes, so finally when they go into debt they have to pay money to more than one creditor which really creates problems for them.

When someone feels that he has to pay that amount of money which he does not have right now then he should consider a solution, and a solution that we have with us right now is Credit Card Debt Consolidation. When you have to pay different amounts to different creditors why not borrow a single amount from one company and pay back all your debts and then finally you have to pay to that company form which you borrowed money to pay your debts. This is how Credit Card Debt Consolidation works.

In this way you can pay all your debt at one time by increasing amount of your loan. But the good thing is that now you have to pay this increased amount to only one company in monthly installments. So, in this way, Credit Card Debt Consolidation seems cool. But, of course, everything has some side effects and so does the consolidations process.

Actually when you pay your debts by borrowing a Credit Card Debt Consolidation plan you are in fact increasing your tension because now this new loan will take you a long time to get paid. We can also look at some other alternatives like debt settlement. In debt settlement you can eliminate 40-50 % of your original debt by paying remaining amount immediately. This process is quite beneficial for a normal consumer so if someone asks the question: Is Consolidation Better than Debt Settlement? The answer should be no, as there is no saving credit card debt consolidation process.

Debt settlement is the best alternative to bankruptcy and usually makes financial sense for consumers with over $10k in unsecured debt. Consumers can expect to eliminate 50% of their unsecured debt on average.

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FreeDebtSettlementSolutions is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.

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