Drowning in credit card debt? You're not alone. Bay Area residents carry an average of at least three credit cards with a total debt of $15,261 and monthly payments of $790, according to Experian's National Score Index.
To alleviate feelings of helplessness, many turn to various debt consolidation services. Debt consolidation can help people get out of dire financial situations, but some methods come with drawbacks, including damage to credit scores.
Not all solutions are equal. Choices range from transferring the balance to a lower-interest credit card, to using a home equity loan or a debt relief service.
"The term 'debt consolidation' has become such a widely used term that it has confused people,'' said Andrew Housser, co-chief executive of Bills.com and Freedom Financial Network LLC in San Mateo. "In reality, debt consolidation simply means combining and downsizing your debts so they are easier to pay.''
Part of the problem, financial experts say, is that when multiple creditors come after your money, it often becomes confusing as you try to get a grasp on your situation.
