Carrying a credit card balance from month to month can lead to big financial issues in nearly any economic environment, as the high interest rates tied to these cards can lead even the smallest debts to spiral out of control. But in today's high-rate environment, any credit card debt you've accrued — or are continuing to accrue — can be an even riskier proposition. One issue is that the average credit card rate is currently 21.
Both options generally require you to have good credit, but obtaining a debt consolidation loan through a debt relief company could be easier if you have a few negative marks on your credit report. After all, these companies regularly work with people facing serious debt issues, so they may be more flexible in terms of lending requirements than a traditional financial institution would be.