Question: Where Can I Consolidate My Credit Cards?

"I have racked up thousands of dollars in debt on a few credit cards, most of which are at very high interest rates. Where can I consolidate my credit cards into one debt with a better interest rate?"

Credit card debts are actually the easiest type of debts to consolidate, and probably the most popular as well. Just about all debt consolidation companies (as well as debt negotiation/settlement firms) will be happy to work with consumers whose primary debts are credit cards. There are two reasons for this:

  1. Credit card interest rates are usually very high.
    Most people are paying at least 14% annual interest, many closer to 20%, and in the case of department store and other specialty cards - it's almost 30% at times. Because traditional lenders normally lend out at significantly lower rates, it's easy to offer substantial savings on interest alone.
  2. Credit card debt is normally unsecured.
    Because credit cards are generally not held up against any security (part of the reason the interest is so high), any consolidation program that requires collateral offers the lender more security than the original debtor (the credit card company).
That said, if credit card debt is your problem, you can likely consolidate your credit cards with just about any debt management service you can find.