Loans used to be the traditional method of consolidating credit card debt. But times have changed and we have learned that this method is not as viable as it once was and we have come up with alternatives that give us a better chance of emerging debt free. Also, not everyone that needs debt relief is in the position to get a credit card consolidation loan.
But just because a loan is not an option, does not mean that you cannot consolidate your debts. There is an option for doing that and it does not require a loan, home ownership or even a credit check. As long as you can make a payment of 2% of the debt you have enrolled, almost everyone that applies for this debt relief qualifies. This debt relief option can be found through a nonprofit credit counseling agency.
These organizations consolidate all of your unsecured debts into one account and allow you to make one payment each month to cover all of your debts that are enrolled. The credit counseling company takes care of paying your lenders. This is a big benefit to someone that is trying to manage several payments each month.
The other thing that a credit counseling company can do is refer you to an organization that manages a type of debt management that may be better suited for you. Debt is not a one size fits all plan and you may require debt settlement or even bankruptcy advice. All of this can be found through a credit counseling organization.
A debt management plan of this type reduces the interest rates on your unsecured debts to around 10% and your fees are eliminated. This will save you several years and thousands of dollars in repayment. You can be debt free in 3 to 5 years, if you follow this program the way it is designed. The nice thing about this program is it is credit friendly. You will emerge with a decent credit score. This alternative for consolidating credit card debt can get you out of debt quickly and with a minor amount of risk.