During these challenging economic times, millions of Americans are struggling with credit card debt. Finding an effective solution to resolving this debt can be frustrating. To help you learn more about your options, we’ve included a breakdown of the benefits and risks of each debt relief option. 1. Minimum Payments You continue paying your creditors the minimum amount each month – Each month a huge portion of your payment is going towards the creditor fees (interest) – Paying down the balance of your debt can take years – To see how long it will take to finish paying your credit card debt, check out the CNN Money Debt Reduction Chart. 2. Credit Counseling You send your monthly payment into the credit counseling firm and they distribute that payment to your creditors, usually for a period of 5 years or more. – Helps reduce your interest rates – If you’re concerned with a lower monthly payment, credit counseling offers minimal, if any relief – Your enrollment is reported to the credit bureaus, which could affect your ability to get a loan. – A high percentage of consumers drop out of the program because they are difficult to manage – Most credit counseling firms are funded by your creditors, which gives them the incentives to make you pay as much as possible 3. Unsecured Debt Consolidation Loan A bank pays off some or all of your debts and in turn you pay back the bank with interest. – High interest rates – Difficult to qualify for this type of loan – Lenders interpret …