Credit Card Debt Consolidation Loan: Facts to Know

Credit Card Debt Consolidation Loan Services are highly popularized in countries like United States of America, United Kingdom, Australia and many more. In this article I’ve explained some of the important facts related to Debt Consolidation, Credit Card Debt, Credit Counseling, Collateral (Finance), Charge-off, Debt Consolidation Loan etc. However, the values, terms and acts vary from country to country. This article is only for knowing the terms on ‘Credit Card Debt Consolidation Loan’; not to encounter any legal subject, statistics, and credit acts of any country or region.


Debt Consolidation service offer people, who need some money to discharge, purchase or pay off additional obsessions in their life. In another way, we can say it’s an easy loan to solve some other credits. However, the service debt consolidation was differ from actual loans; as its rate of interest is very less or fixed for some collateral assets. There are many firms that provide debt consolidation programs to resolve issues like bankruptcy, bad credits, billing problems, high debts etc.


A Debt Consolidation Program can help you easily by resolving several bills and loans every month at a lower interest. As a common every person pays bills like gas, water, electricity, education, house, car and many other utilities. However due to certain reasons the users failed to pay in time and come across the bad debts with additional charges. A debt consolidation program merges all the bills and loans of you and pays the same in time for you; you need not to pay attention for that. In addition, your rate of interest will be very less as you paid all the bills jointly. Please read the terms and conditions carefully before attempting the same from any debt consolidation firm.

A Credit Card Debt Consolidation Service or program helps you to get out from the credit card debts and manage your debts, loans as well as future bills of your utilities. The credit card debt consolidation services helps to pay off your debts without losing your credit score or filing for bankruptcy or liquidation.

Credit Counseling or Debt Counseling is a program based on various subjects related to loans, debts, credit card management, debt management plans, budget etc. Different countries have their Debt Management Programs where they educate or counsel customers about the above said topic; however there are some pros and cons of this program too.

What is a Charge-off? When a consumer fails to pay his debt continuously for a period of 120 days (or 4 months), the creditor or lender will charge a particular amount on behalf of the late payment; however for revolving credit accounts the period of charge-off is after 180 days (or 6 months).

Most of the customers thought that after paying the charge-off amount they needn’t to pay their rest amount; which is absolutely wrong. They have to pay their rest amount as they usually pays or they can go through a better Debt Consolidation Services nearby.

What is Collateral (finance)? A very simplest meaning of collateral is promising to pay the taken debt with a secured mortgage (mostly of a house or something which is very expensive as compared to the loan amount).