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While having one low rate and one payment is an attractive option, many people end up in similar or worse financial situations when attempting credit card debt consolidation.According to Cambridge Credit Corp., a nonprofit credit-counseling agency, 70 percent of Americans who take out consolidation loans end up with the same or more debt after two years.Most often, the required collateral is a second mortgage or a home equity line of credit.This is incredibly risky because if you cannot meet your payments, your home is on the line.

Because there is no general industry consensus as to what the best ways to manage debt are, we have narrowed down your options.Debt Consolidation: Consolidation is the process of combining all your debts into a single, lower payment by taking out a loan to pay off your creditors.Companies usually attempt to lower your debt through debt settlement before recommending you take out a loan.While a debt consolidation is less risky than other options, like bankruptcy, it still carries a considerable amount of risk.When you take out a consolidation loan, you are required to put forth collateral.

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