Debt consolidation loans for credit card balances do not reduce the amount you owe. However, a settlement program does if you qualify as a hardship case.
Payment of credit card balances determines the interest charges and late fees, and factor into utilization ratios – a key component of risk scores. Every month banks send statements to cardholders showing the amount owed, and the minimum payment amount, and the due date. Cardholder choices have many consequences.