Consolidating credit card debt may be the answer for anyone who has fallen behind with the payments on their credit cards.
It's quite common with all the layoffs to find many people struggling to cope with their finances.
The main problem arises because when you fall behind with the payments you incur penalty charges, and extra interest is added to your account, forcing you even deeper in debt.
By consolidating credit card debt, you take the pressure off, you get rid of penalty charges and extra interest, and you are left with one more manageable monthly repayment.
The process of consolidating the debts is fairly simple to understand and involves the use of a company that specializes in this field.
They combine the moneys owed on all of the credit cards into one amount.
They then pay these bills on your behalf, and you now pay this company an agreed monthly payment till the debt is cleared.
The two types of company that specialize in this field are 'fee based' and 'non profit making' companies.
Fee based companies will add charges to the amount that you owe, before they calculate the monthly repayment.
Non profit making companies offer advice and services totally free of charge.
Some agencies will offer advice not only on your current predicament, but also advise on ways to avoid any further financial problems.
They may offer counselling to help you manage your finances in a better way.
Unpleasant phone calls and threatening letters can lead to depression and despair, and consolidating credit card debt may free you from your current nightmare.