Options for consolidating credit card debt

Declining market values can develop into a negative equity situation for those homeowners who max out their lines of credit to pay off credit card debt.

Unsecured lines of credit offered by banks and other lenders are similar to credit cards, except the account holder is given a book of checks to use for purchases and to pay off debts.

Many people find that reducing their debt to one payment helps them focus on paying the debt down.

Homeowners commonly turn to equity lines of credit to consolidate credit card debt, but unsecured lines of credit are also available from many lenders.

Some banks and credit unions automatically attach lines of credit to checking accounts for customers with good credit to use for overdraft protection.

Many people like having a line of credit available as a safety net in case of a financial emergency.

Unsecured lines of credit can sometimes feature relatively high interest rates and fees.

This can be a smart move if the interest rate and fees do not exceed the interest rate and fees of the credit cards you want to pay off.