The number one unsecured money problem in the country, hampering families and individuals from financial freedom and a secure financial future, is bad debt credit cards. Many purchasers end up holding off collection agencies by merely paying the interest every month to the company without ever touching the principle for years due to sky high interest rates which are often over !8% on credit cards. Skipped and halted payments, as well as charge offs are common for those with bad debt credit cards.

There are several common options available to those who hold such cards and have no possibility of paying them off soon. Credit agencies, consolidation companies, and settlement companies are several of the common choices available today that can help tackle mounting financial burden. A person can also choose to directly contact the company or companies to which he or she is obligated, and attempt to negotiate a pay off plan. Most times this option is not feasible however because of the lack of expertise the general consumer possesses regarding bad debt credit card resolutions.

It is much better in most instances, to thoroughly research a person's best financial resolution to bad debt credit cards through companies who specialize in bad debt credit card relief. A careful shopper will find different relief plans offered through agencies who specialize in this area. These agencies are non-profit agencies, and many times are free of charge only minor “volunteer fees” to the consumer in exchange for counseling and pay back plans. Many of the payback plans include consolidation of all monthly payments with a reduction in interest.

A down side to some agencies is their relationship to creditors, which can be a conflict of interest for the consumer.

Consolidation companies offer varying services but commonly advise a consolidation plan for all debt with one flat monthly payment. These companies sometimes work with non-profit agencies and can charge fees for their services. A more popular option that has arrived for holders of bad debt credit cards is settlement companies. Many offer financial counseling for no charge until a workable plan for wiping out bad financial situations is agreed upon and implemented. They receive payment for their services through a percentage of the settlement that they are able to negotiate which is a motivation to secure the best settlement for the consumer.