| Home | Types of Services | Getting it done | Qualifying | Benefits | Industry Aspects | Cautions | Conclusion |
| Continued from previous page The other problem is that usually the payment period involved is much longer than it would likely take a person to pay off the unsecured debt on their own. 30 years versus 5 years is a significant difference in interest charged, even if at a lower rate. As a result, using your home for bad credit consolidation should only be used if your cash flow situation will definitely put you in bankruptcy without the fix. The second option is to consolidate your bad credit accounts all into one account. Usually credit card companies will put out teasers offering temporary lower interest to transfer over balances. Each company knows you’re paying debt; they just want you to pay the interest to them instead of someone else. Thus transferring balances is not that difficult. The benefit is that it groups all your different accounts together into one account. This helps with timing cash flow by only having one payment due a month instead of multiple payments. The downside is the one big account could end up charging you more interest than you paid to the separate accounts, since you become a bigger risk to that one recipient company. Other alternatives are not bad credit consolidation at all. These come in the form of debt services that offer to either get your debt reduced through settlement talks, acting as your liaison to the credit card companies you owe, or to use a snowball effect of paying one account off at a time while making others wait. Both approaches charge fees and can cost you much more. Settlement talks will almost surely end up giving you a bad mark on your credit report, but can take debt off your back that you never have to pay. If your credit is already bad, this may be a way to go. The worst the credit card company can do is refuse to settle for less.
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