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Presently the programs that the majority of consumers have when attemping to get rid of credit card debt are very limited. There are truly only three options of debt relief that can be used for a consumer to realistically get out of debt without having to go down the path of a dreaded bankruptcy hearing. And to be quite honest the majority of people have not a clue what these programs are that are available to them. There is a credit card debt settlement program, a consumer credit counseling program, and then the possibility of getting a secured debt consolation loan. Anyone of these plans is not necessarily any better than any of the others however depending on a consumer’s personal financial state of affairs will resolve which will be of a greater benefit.

With getting a debt consolidation loan debtors can rather easily pay down all of their debts in one shot. But such loans aren’t so simple to obtain in this bad economic collapse. For starters you must have equity in your house and decent credit history to get the loan, and large numbers of consumers have neither right now. One more point to consider is that you are still in debt when doing this you are simply transforming your low risk unsecured debt into a higher risk debt secured by your home. Needless to say this can be rather risky.

The next option of consumer credit counseling is one that has been quite popular over the last decade. The advantages of using a program like this are that normally the creditors will peel back your interest rates and then they will put you on a fixed payment. One payment in which you will make monthly to the credit counseling organization and they will distribute for you to the creditors. There is however a disadvantage to this plan and that is you have a high chance of failure, because many consumers cannot maintain the high payments to stay up to date with the program.

A fresh and more attractive plan of consumer debt relief many people have been trying is that of debt settlement. This procedure allows people to kill two birds with one stone. Credit card debt settlement allows people to save a lot of money and get rid of credit card debt very fast. But the drawback to this plan is that you must fall behind on the payments in order for the creditors to be willing to negotiate a debt settlement. When a debtor discontinues making the payments this puts the creditor in a compromising position to where they will be now willing to negotiate a settlement. Most of the times the consumer will find themselves saving close forty to fifty percent of what they currently owe out on their credit card balances.

Unsecured Borrowings in Consolidating Debt or Secured Borrowings?