Debt consolidation is a term that refers to the settlement of various unsecured loans. An unsecured loan mostly refers to the medical bills and credit card debts that remain unplanned or unrequired on the debtor’s side. An unsecured loan means that the concerned bank or creditor related to the loan does not have any security deposit from the debtor. Security deposits are taken in case of secured loans where the loan applicant deposits some property papers of asset to the concerned loan provider in order to give the creditor a secured feeling of lending money. In case the debtor is not able to pay the amount of the loan taken back to the lender, the lender can use the security deposit asset to recover the loan amount. The creditor may sell the asset or use the property in order to fulfill the loan amount that it had credited to the debtor. The debtor then does not have any right on the security deposit asset and is not liable to claim any right on that asset. In case the debtor is able to return the entire amount along with interest then the security deposit is given back to the debtor and then the creditor has no right on the assets any more.

Debt consolidation usually refers to taking up one single loan in order to settle all the out- standing credit card debts. When people starts using multiple credit cards and enter in to a situation where the account holder ends up spending more than the limiter credit card amount, the credit card owner is said to be unsecured debt. as credit cards usage does not require the involvement of any security deposit it is known as unsecured debt or loan. In such situation when the debtor who is under credit card debt do not have sufficient amount to pay to the banks he has debts with, the person can take up one single loan of the debt amount from a firm that allows credit card debt consolidation loan. These firms are special debt relief firms that unlike other loan lenders issues loans on a comparatively lo interest rates so that the debtor can easily pay the debt amount back to the firm.

Some firms even take care of the debts on a personal platform. In such firms like national debt relief the debtors needs to pay the amount to the debt relief services and then it is they who take care of he due payments to the bank. Registering under national debt relief is an easy task to do, one just needs to qualify there criteria and get started with the debt relief process. The professional at national debt relief provides their client with an account where the client can follow up the various payments that are being done by the debt relief services and keep a track of all the transactions. The national debt relief only takes up the fees of doing the job after they already have paid all the debts and set the client debt free.