Many consumers will take advantage of credit card debt consolidation. This convenient service can help save money in a variety of ways and help manage debt efficiently. In addition, consolidating credit card debt can eliminate the need for multiple monthly payments and put a stop to the harassing calls from creditors.

So, how does credit card debt consolidation work? Basically, the agency in which you have selected renegotiates your debt with each creditor to lower the monthly payment and reduce interest on the accounts. Rather than send the payment directly to the credit card companies, the consumer makes one monthly payment to the debt consolidation company. These funds are then distributed among the creditors.

Many of these services will allow the consumer to pay off their credit card debt in as little as three to five years. However, this will vary on an individual basis. Factors to consider are how much is owed and what the consumer can afford to pay. Three to five years may seem like a long time, but attempting to pay off the debt on your own can often take much longer as there are typically more fees and interests associated with this method.

While credit card debt consolidation is a viable solution for many consumers, it is important to remain cautious. There are many scams on the market and not all of these companies may be reliable. For this reason, it is recommended that the consumer investigate the service before proceeding. A legitimate company will not ask for any type of money upfront. In addition, it is also a good idea to look around. There is usually a fee for utilizing these services and it will vary by the company. Overall, credit card debt consolidation can be a great solution for credit card debt. (Pixelio/Claudia Hautumm)