Most of the people these days carry multiple cards with them.
This does not possess any problem till the customer is being able to pay all of them on time.
However, recent economic scenario has made it difficult for many customers to make timely payments on their accounts.
The cards which were the source of convenience at one point in time are a source of great stress now.
People are trying out different debt relief programs to get rid of these debts.
If a customer is holding multiple cards then the best debt relief solution for them is debt consolidation.
This program is useful in case of multiple cards.
The interest rates of credit cards are generally higher than the unsecured debts taken from the bank.
This method helps in taking another loan at a lower interest rate in order to pay off all other credit card loans.
The new loan taken out can be either secured or unsecured.
Most argue that taking an unsecured loan is better as it is not attached with the risk of losing the security.
However, collateralization allows a still lower rate of interest.
A customer can weigh the pros and cons and decide if he wants to take a secured loan or an unsecured loan.
Different debt consolidation companies might offer a different interest rate.
Some might even discount the loan amount if the debtor is on the verge of filing for bankruptcy.
Hence a customer must visit a few debt consolidation companies before deciding on a particular consolidation company.
Recently some concern has been raised that even though the customer is getting a lower rate of interest, the period of the loan is so long that the consumer ends up paying much more than he had signed in for.