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Unsecured credit card debt consolidation refers to the process of consolidating all of the credit card debt that you owe into just one monthly payment without having to put up any of your assets as collateral. While it sounds great, there are some negative aspects of the unsecured credit card debt consolidation process. In fact, not being careful can make your financial circumstances worse after the process is over with than it was in the first place.

So here are just a few ways you can do unsecured credit card debt consolidation and the things you should keep an eye on when doing it.

Balance Transfer To A New Card

You may get offers like this in the mail all the time and they really are not a bad offer except for the fact that you are taking on yet another credit card to do this. This way of unsecured credit card debt consolidation will offer you something like a book of checks that you can write to other credit card companies and consolidate that debt under your new card. To make it more attractive the new credit card company will usually offer 0% interest on all transferred balances which is a great help.

If you can avoid using that new card then you just did a great thing but if you start using that new card then you just added to your debt while simultaneously reducing it at the same time. Just be careful with this and use it to do unsecured credit card debt consolidation but then cut up the new card and never use it.

Consolidating Debt by Means of a Finance Company

This method of unsecured credit card debt consolidation is definitely the least attractive because the interest rates that a finance company will charge are sure to be around twenty-five percent annually. That interest rate is almost certainly higher than the ones that you would have been paying on the credit cards you owe money on. Finance companies consolidate your debt by combining the principal on all the credit card accounts you owe and then making a ten year plan for debt elimination.

A ten year loan at 25% to pay off credit card debt is probably the worse kind of unsecured credit card debt consolidation there is. You are better off with the credit card consolidation deal mentioned previously than doing this method.