When seeking help with credit card debt, you will come across the terms debt consolidation and credit counseling. These two options have worked to be debt solutions for millions who needed help managing their debt. They may help you too, but before considering one of the two, you must first understand how debt consolidation and credit counseling work, and the pros and cons of each solution.

Debt Consolidation:

The definition for this type of help with credit card debt is easy enough. The process involves combining all of your outstanding debt, and putting it into one loan to where you pay one monthly payment. When you enter into a debt consolidation agreement, you take out a new loan, and it is with this loan that you will be able to pay off your creditors. Some people use a debt consolidation company, and others simply do it on their own.

Many people prefer this type of help with credit card debt, because it simplifies your debt by putting it into one payment, and allows you to eventually pay off all of your debt. You no longer have to deal with multiple payments every month. And another bonus to debt consolidation is that, in some cases the interest rate that you will receive on the consolidation loan can be lower than a credit card interest rate.

However, there's a downside to debt consolidation. For those who have bad credit, getting a loan may be difficult. And if you are able to manage a loan, you can guarantee that your interest rates will be higher than your current interest rates. But if you have good credit and are current in your payments, but are having difficulty managing multiple payments, then debt consolidation may be a good choice for you.

Credit Counseling:

Credit counseling is where a credit counselor reviews all of your current debt. They will also take a look at your assets and current income. Then they will devise a repayment plan that will allow you to pay off all of your debt. Credit card debt help of this kind is very beneficial because it takes a lot of pressure off of you, especially if you are able get an experienced and reputable credit counselor. They will contact your creditors and try to negotiate removal of late fees, or lower your interest rates. Depending on the credit counselor, some offer their clients the ability to make one monthly payment that they will in turn use to pay back your creditors.

However, there are some disadvantages to credit counseling as well. If you take up a repayment plan, you might have to get the approval of your creditors. Your credit score might take a hit in doing so. This may also lead to closing out of some of your credit accounts. But if you're one of those that are in over your head in debt, and unable to get a handle on what's happening with your money - then credit counseling may just be the type of help with credit card debt that you truly need. You can always work on rebuilding your credit score after you pay off your debt.

Author's Bio: 

While consolidating credit card debt and credit card debt counseling are both reasonably good debt solution alternatives - better than having to go for debt settlement or file for bankruptcy - you should ensure that the solution you choose is the best for your circumstances.

The author of this article, Shan, was once deep in debt to the amount of thousands of dollars, but is now enjoying a debt-free life by following a few basic, debt relief and money management principles. Visit Credit Card Debt Relief site to learn more.