Types of Credit Card Consolidation

We offer two types of credit card consolidation: debt consolidation and debt negotiation. On this page, we'll tell you more about each to help you decide which is best for you.

Debt Consolidation

Debt consolidation is the same thing as a credit card consolidation loan. Both refer to the bundling of your many, high-interest credit card debts into one loan, on which you make one monthly payment. Some debt consolidation services allow you to include secured debt in your consolidation, but we deal exclusively with credit card, or unsecured, debt. A credit card consolidation loan passes on reduced interest rates that we have already negotiated with most creditors. When you consolidate, we simply reference the negotiated, lower rate for your creditors and arrange a payment schedule. Debt consolidation, or a credit card consolidation loan, is best for those who:

• Have between $5,000-$20,000 in unsecured debt
• Are current on payments
• Have never used a credit card consolidation loan before
• Are dealing with many, high-interest credit cards
• Would like to reduce monthly payments or interest rates
• Want to make one monthly payment instead of dozens

Debt Negotiation

Another type of credit card consolidation loan is called debt negotiation. This is a more intensive intervention for those who are struggling with considerable amounts of debt. Debt negotiation requires you to stop paying your creditors for a certain time while the consolidation company negotiates to reduce the total amount of your debt. Debt negotiation is not a credit card consolidation loan per se, but it does allow you to make one simple payment to become debt-free forever. Once negotiations have concluded, you take the money we have you deposited into a specially designated account and make a lump-sum payment to your creditors. Usually, our customers' total debt is reduced by 40%-50%. You should consider debt negotiation if:

• You are more than three months behind on payments
• You have dropped out of a credit card consolidation loan program
• You have over $20,000 in debt
• You are in danger of bankruptcy
• You can no longer make payments on your credit card consolidation loan

If you have any questions, please visit our Frequently Asked Questions page.