Tags: credit card consolidation, consolidate credit cards, consolidate credit card debt

There's been a lot of negative press that surrounds debt settlement. It stems from reports that it costs too much and that it will damage your credit score. And, while, in some cases, this might hold true, the reality is that debt settlement could cost you a lot less than paying your minimum monthly payment and might even benefit your credit score if you already have a less than perfect payment history and you have too much debt and not enough credit.

Debt settlement is a way to consolidate your credit card debt by making one huge settlement payment, usually at about 40% - 60% of the account balance, and effectively closing out that account. And, debt settlement works really well for people who have accumulated a higher debt amount than their credit and who are 60, 90 or 180 days late.

So, if you have a $20,000 line of credit and of that you have spent $14,500, it shows up negatively on your credit report. Creditors looking at this information will consider you a bad risk because, from what they see on paper, it shows that you are irresponsible on spending money. Now, keep in mind that although you may have been hit with on emergency after some crisis, creditors can only go by what they see on paper.

If you are 180, 90 or eve 60 days late on a payment, just one, you are already regarded as a bad risk. If, however, you have been late once, you can call the creditor and ask to have late payment removed. If you have more than one late payment, there is no correcting that.

Debt settlement also works well for people who don't have a home that they can put up for a credit card consolidation loan. It also works really well for people who have tried to go at it alone, but haven't had real success, with either saving money or being able to negotiate. And, while there is a service fee, it is no different from any other service. But, even with the fee, debt settlement won't be as bad as paying the credit card companies all that money on interest rates. Take a look here at how much it would cost you in fees and how long it would take to pay off just one credit card account.

If you find that you fit into one or more of these categories and you are looking for a means to consolidate your credit card debt, but a credit card consolidation loan might not be a viable solution, do note that there is always credit card debt settlement. If you would like to talk to a debt solution specialist about credit card consolidation, or interested in a credit card consolidation loan or want more information about credit card debt settlement, call us at 1-800-562-6737 or complete the form to have a debt solution specialist contact you.

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