Credit cards are at the heart of most consumer debt in America. In fact, when we speak of credit consolidation services we are almost always talking about consolidating credit card debt. Estimates vary widely as far as how much credit card debt is owed by the average American household but it usually comes down in the range of between $7000 and $9000.

A figure like that representing average credit card debt means there is still plenty of people whose credit card debt far exceeds that amount. Everyone reaches their breaking point in their ability to cope with the debt load they have created. Many people of reached this point and are a struggling just to stay afloat.

Credit consolidation services have stepped in to try and assist the people who are in over their heads. Right now there are approximately 400,000 consumers working with over 1,000 services nationwide. The consumer is desperate to find a solution to their debt load and these services have become an extremely popular option for many.

These services are able to act as a go-between for the consumer. They have on-going relationships with the banks and credit card companies and can be an advocate for their clients to negotiate lower interest rates, decreased fees and the elimination of late charges. The service does everything it can to make the monthly payments manageable by the consumer.

The creditors want to work with credit consolidation services because they want to work out a payment plan that will help these struggling individuals pay off their debt. If the consumer is forced into bankruptcy by excessive fees and interest rates, the creditor stands to be left with nothing. They are then forced to either write off the debt or turn it over to a collection agency. They only stand to gain if the consumer is able to pay off the debt.

The service will act as the advocate for the debtor and will also act as a clearinghouse of sorts by accepting payments from their clients on a monthly basis and distributing payments to each one of the creditors according to the agreed-upon amount. The entire process takes usually 4 to 5 years before the person is debt free. During this time their credit card accounts are closed down and can no longer be used.

Credit consolidation services not only provide the services mentioned but they go the next step to counsel their clients as to how they can avoid getting into the same situation again. Credit counseling and debt consolidation are used pretty much to mean the same thing in the financial industry. A reputable credit counseling service will offer many educational services that will help their clients develop a more fiscally responsible life style.