What is the Difference Between Debt Settlement and Debt Consolidation?

In today’s economy, with high unemployment rates and outrageously high living expenses, it is no wonder that so many people find themselves in a quagmire of unsecured debt. Most Americans now have at least one credit card account, many of those falling into the “sub-prime” category, meaning due to their credit rating they are getting charged twice the normal fees and interest. Many of these accounts will only offer a $300 or so credit limit, and often will have up to $200 in fees on the card upon initial activation. Then there are monthly maintenance fees, interest rates as high as 41 percent, and then when you use the card, you find yourself over the limit and being assessed as much as $35 for each over limit occurrence. In the event something goes wrong, and you are unable to make the monthly payment on time, you are then looking at also being assessed a $35 late fee as well, making it virtually impossible for the average consumer to get the account to a current, under-limit status. Faced with all of this, many consumers will turn to other sources to try to get help with their debt problems.