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Get Out of Debt in 3 Easy Steps
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Debt consolidation means you are taking 2 or 3 credit cards, and "consolidating" them into one loan. Preferably you would take out a personal loan at an interest rate much lower then the rate your current cards are.
By not paying 3 minimum payments, you are now only paying one payment that is less the the 3 minimum payments.
What you need to do is either locate a new credit card with a much lower interest rate, or go to a bank and get a new loan to pay this off.
Just be aware of a major trap that many people make. STOP USING CREDIT until you get this loan paid off. I've seen many people go this route, only to once again charge up their now-empty credit card. Then they are twice the amount in debt, and end up filing for bankruptcy.
What is Credit Card Debt ConsolidationCredit card debt consolidation adds up all your unpaid balances and converts them into a single payment. This payment is far lesser than each of the individual payments.
When you finalize a plan with a debt consolidation company, the company repays your dues to your creditors. Then you make a single payment to the consolidation company every month. Your average new interest rate is much below the old interest rate.
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