Debt Reduction vs.Debt Consolidation (aka credit counseling)

In a debt consolidation plan, also called credit counseling or consumer credit counseling, you achieve a reduction in interest rate to a more reasonable rate, like 9% instead of 29%, but you still will pay the entire amount of the debt back.  For someone with $60,000 of credit card debt, even at the reduced interest rate of 9%, over 3-5 years, you will pay back about $80,000 total.  For someone in a cedit card debt reduction program, the total payback, including all fees will be closer to $30,000-$36,000.  So debt reduction is a superior form of debt relief by far.