In the true sense of consolidation, there would be one payment made each month, on the same due date, with only one interest rate. The most traditional form of debt consolidation has been done by refinancing a home mortgage.  This is a dangerous mistake many have made in recent years; exchanging unsecured credit card debt, for an interest only home equity line of credit, which is now secured by the home as collateral.   Although refinancing or obtaining a home equity line may offer the convenience of one payment amount, one due date, and one interest rate, the minimum payment is typically nothing but interest, which doesn’t pay off any of the debt already incurred.  There are two reasons why this becomes dangerous – First, your home secures the line of credit which means if you default they may proceed with foreclosure.  Second, it gives you a lower payment creating a deception that you can now afford to charge more on your credit cards. According to a study by Atlanta research firm Brittain Associates, nearly two-thirds of the people who borrowed against their home equity to pay off credit cards had runup more credit card debt within two years.

There are some companies that offer an unsecured line of credit to consolidate your debt, but this is very unlikely to happen when the majority of your credit cards are maxed out or there have been any type of late payment history.

Many often confuse both credit counseling and debt settlement as a form of debt consolidation.  Yes, they do work to achieve one monthly amount, one due date and in the case of credit counseling one interest rate, but none of your debt is ever put together or consolidated.  It may seem like a very minor issue to many, but to effectively eliminate debt, you first need to understand what you are doing, why you are doing it, and the truth about what will happen and when it does, to make it successful.

To learn more about the most effective form of debt consolidation; debt settlement visit:

http://www.commoncentscreditsolutions.com/page/12/step-by-step-debt-settlement

JPMorgan Chase & Co. is raising some balance-transfer fees on credit cards to 5 percent, the highest among the nation’s largest banks, citing increasing regulations and costs after the U.S. put new curbs on the industry….

“This is the highest balance-transfer fee in the industry,” said Bill Hardekopf, chief executive officer of LowCards.com, a Birmingham, Alabama research firm.

Be sure to know the fees your credit card company charges before you take any action that could cost you a lot of money.  Or better yet, get out of debt and stop using credit cards altogether.