Debt Negotiation Program vs. Credit Card Debt Consolidation Loan
A debt negotiation program is not the same as a credit card debt consolidation loan. Credit card debt consolidation takes two forms. One form is through a Consumer Credit Counseling Agency who simply consolidates your monthly payments and distributes them to your creditors until you become debt free. However, this can take several years and many individuals drop out of such program before they become debt free.
The other type of credit card debt consolidation is achieved through a home equity loan or other secured loan. A credit card debt consolidation loan through a secured loan exchanges unsecured debt for secured debt, so you do not become debt free - you only shuffle your debt around. Many people suffering from overwhelming credit card debt are not homeowners or do not own enough equity to qualify for a credit card debt consolidation loan. So, credit card debt consolidation is not an option for many wanting to become debt free.
