The chase to catch up with your bills will never end.
Putting the credit card away would be a first step, but not the only one you need to consider before deciding that debt consolidation is your financial savior.
Instead, there is one payment to one source, once a month. There are two major forms of debt consolidation – taking out a loan or signing up for a debt management program that doesn’t include a loan.
The loan should be large enough to eliminate all the unsecured debt at one time.
The loan is repaid in monthly installments at an interest rate you negotiate with the lender.
The agency may also get the card companies to waive late fees or over-the-limit fees. Debt management programs usually take 3-5 years to eliminate debt.
If you miss a payment, they can revoke whatever concessions were made on your interest rate and monthly payment.
The repayment period is normally 3-5 years, but how much you interest you are charged is the key element.