Unfortunately some unethical companies and agents are taking advantage of the fact that so many consumers are in serious financial trouble.  Because of this, the term credit card debt consolidation is being abused, and is now being used to refer to both debt management and debt settlement.  So, you must be sure of what you are getting into before you sign on the dotted line.

Debt management should be considered if you are barely able to make the minimum payment on your credit card account.  If you opt for debt management, your card issuer will close your account and reduce your fees and/or the APR.  This will have a marginally negative impact on your credit.

Credit card debt consolidation sounds like it might be a good option for you.  With debt consolidation you can move all of your credit card debt into a loan that carries an interest rate lower than what you are currently being assessed on your credit cards.  When you do this, your balance on your credit cards will become zero, making it appear as if you have more available credit on your credit report – this will raise your credit score as well. 

If you feel very confident that you will able to make the monthly payments on the loan you take out to clear your credit card debt, then you may want to use your house as collateral (i.e. get a secured loan).  However, if you think your medical condition or another life circumstance might prevent you from making monthly payments in the future, take out an unsecured loan to proceed with debt consolidation or leave the debt on your existing credit cards. You definitely do not want to put your home at risk in your pursue to save money by lowering the interest rate on your credit cards.