What is credit card debt consolidation and how can it benefit you? I am sure you have heard many things about this topic so it's best to clarify any uncertainties. Consolidation is fairly straight forward, so much so that perhaps you may at first wonder why even bother until you know some of the other benefits of it. Credit Card Debt Consolidation is where all of your credit card bills from various credit card providers are amalgamated into one single bill. This is often very popular with credit card bills in particular since the interest charged on credit cards are quit high, 18.5% if around the average. Thus one bill to handle each month instead of several, and at an amount that you can afford. So how does one gain by this? In doing so, you can receive a lower interest rate than the usually high interest rate credit card bills have. A popular move with debt consolidation is to move your unsecured debts to secured debts. This is when you the debtor puts up collateral such as your house or any other item the bank or financial institution allows ensuring payback. So if the loan is not paid back the creditor can possess the house to sell it and pay it off. When a loan is of the secured type, it allows the debtor to obtain the loan at a lower interest rate since the risk is greatly reduced to the lender. An unsecured loan on the other hand has nothing backing it up, so as the risk is higher, so is the rate of interest. In the case of an unsecured loan, if the debtor faults on the payments, the creditor usually has to resort to bringing the debtor to court where several options maybe applied to unsure payback.