Monday, July 13, 2009

Credit Card Debt Consolidation and How It Works

Many people wonder how a credit card debt consolidation works. In the simplest terms, they are agreements made by the credit card companies with a debt consolidation company on your behalf. The debt consolidation company works with all of your creditors to get your interest rates lowered and make your payments more manageable for you to pay back. This it a great way to pay back your debt without filing for bankruptcy and ruining your credit score. Also, all of your credit card bills are now going to be all on one bill, saving you the stress of remembering all of the payment dates for multiply cards. The down side is that many times these loans increase the length of time you will be paying back your debt.

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