Unsecured credit card debt consolidation is a way to lump all of your mounting debt into one, easy to manage monthly payment.  If you've exhausted all other methods to get on top of your credit cards, this is the easiest way out.  I recommend doing your best to tackle your debt on your own before signing up for unsecured credit card debt consolidation because it does have a negative effect on your credit score (more on this below).

The basic premise of unsecured credit card debt consolidation is you "hire" a company that will negotiate with your creditors to get some of your penalties, late fees, and interest removed from your outstanding debt.  After that is completed you and the credit card debt consolidation company come to terms on a monthly payment.  You make the monthly payment and they pay your debt.  It won't clear your debt or improve your credit score right away, but it certainly is an effective method to get yourself out of debt within a few years.  Let's take a look at how a credit card debt consolidation company works, the benefits of signing up, and the negatives of using this process.

Unsecured credit card debt consolidation companies have experience handling even the most extreme amounts of credit card debt, and can help you wade through the system. Even better than experience, they have long standing relationships with many creditors and banks. What this means for you is that they can leverage this relationship to get your unsecured credit card debt significantly reduced. Many of the high profile consolidation companies have been doing this for many years, and have recovered millions of dollars worth of debt for the credit card companies and banks. Most banks and creditors are more than willing to work with the debt consolidation companies.

Keep in mind that they aren't going to erase your debt. There is still a very large chunk that you're going to have to repay. The good thing is that it'll be broken down into bite-sized amounts that you shouldn't have trouble paying each month. Most of the reputable credit card debt consolidation companies will also help you build a budget that you can stick to and easily make your payment to them each month. The amount of your monthly payment will depend on your income, the size of your debt, and your regular monthly expenses. Usually the payment will be automatically deducted from your checking account to make sure that it's paid each month.

You also won't be able to use any of the credit cards that you are consolidating during the process, and getting a decent rate on any other credit cards will be next to impossible.  You may still qualify for unsecured loans for bad credit, but they're going to be very expensive.  This is probably a good thing though, since you won't be able to rack up any more debt while you are paying off the first round.

The obvious benefit of consolidating your bills is that you are on the path to getting out of debt.  One thing that you might not be able to see where you're standing now is the extreme relief that you'll feel knowing that you made a wise choice and are on the road to success.  All you have to do now is make enough money to make the payment each month.

It will usually take 5-7 years for your debt to be gone.  After that time you will get a nearly clear start on your credit future.  This means that in a few years you'll be able to build your score back up high enough to apply for a home loan, or get a great interest rate on a new ride.  

You should only use unsecured credit card debt consolidation after you have exhausted your own efforts to pay the debt on your own.  This is usually evident after you are only able to make the minimum payment on your cards, or have defaulted.  The reason for this is that using a debt consolidator will remain on your credit report for years to come, and it will take a long time for your credit score to rebound as high as it would have without using one.  

With that being said, if your credit score is already in the toilet unsecured credit card debt consolidation is one of the best things you can do to get it back up.  A decent credit score for a few years is much better than a terrible one for the rest of your life.