Make sure you are working with an NFCC-member nonprofit credit counseling agency like InCharge Debt Solutions. Nonprofit credit counselors provide impartial financial advice that has your best interest in mind. A nonprofit debt management program will have low fees and work to secure interest rate reductions on your credit card debt, so that you are able to pay off your debt by making consistent affordable payments.
Debt consolidation loans are a well-known, well-advertised option for consumers who struggle with debt. These credit facilities exist for the express purpose of paying off outstanding unsecured debts and do their job quite well. When you take out a debt consolidation loan, your lender immediately pays off your existing creditors and starts billing you for the balance.
Nearly 50% of all college graduates leave school with private or federal loans, and the average US student leaves with at least $10,000 to repay. This can be a substantial burden for recent graduates, which makes student loan consolidation a smart - and sometimes necessary - choice for any graduate in need of debt help. Consolidation of federal loans is easy, and might save you hundreds of dollars by lowering your interest rate. Read our guide to federal and private student loans, browse our articles on the topic.

However, outside of these types of package services, there is little difference with the actual debt management service provided. If money is already tight and you can’t afford the bills you have now, there’s little reason to add another. You’re usually better off going through a nonprofit agency in order to keep fees low and ensure your plan is affordable.

For most people I would say that signing up for National Debt Relief is not a good idea. While on its face, having you pay no up front fees with the goal of making you debt free in 2 to 4 years sounds great.  However the truth is there may be better options which can accomplish the same goals for a lower cost and that have less of an impact on your credit and your sanity from being sued by a debt collector.  Debt settlement in my opinion is best suited for people who have already been delinquent with their debts and have lump sums to offer up front to negotiate settlements of 50% or less in many cases.  Otherwise chapter 7 bankruptcy or chapter 13 bankruptcy may be the best fit to eliminate debt or pay off debt over a 3 to 5 year repayment plan and avoid being sued by a lawsuit.
In the United States, Credit counseling agencies are loosely regulated by the Federal Trade Commission (FTC), the nation’s consumer protection agency, which can sue companies that have deceived consumers about the cost, nature, or benefits of their services.[1] Different states may regulate DMPs individually and Attorneys General are empowered to protect state citizens from fraud.[4] Two professional associations represent Credit counselors: the National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies.[6]
Learn about other types of assistance programs from credit card companies. While it is true that many are increasing fees and in general turning up the pressure on credit card holders, there are also an increasing number of companies that are creating assistance programs to take a more pro-active approach in an effort to truly help people. They are more willing to reduce and cancel unpaid debt, reduce interest rates, allow payment plans, and offer other assistance.
It definitely sounds like you are in a tough spot. Can you make minimum payments until you get a place to rent and then try to resolve your debt? In addition, it would be a good idea for you to check out credit counseling as that may allow you to lower your payments, pay your debt in full, and avoid the kind of damage to your credit that settlement will do. (I am not opposed to settlement – it can be helpful in certain situations. But it definitely will affect your credit scores for some time.)
Often, one of the first things that people ask when they come to us is "what are my credit card debt options?" Typically, consumers want help consolidating debt, which means taking out a new loan to pay off a number of other debts. The hope is that with a lower interest rate on a new loan they'll save money, and with just one loan payment to make, they'll stay current with their creditors more easily.
Debt consolidation. When you refinance debt, you can often consolidate debt in the process, because the new loan is used to pay for multiple other debts. For example, if you had three credit cards on which you owed $3,000, $5,000, and $2,000 and you took a $10,000 balance transfer or personal loan to pay off all three, doing so has the effect of consolidating your debt. 
Veteran journalist/blogger Tom Jackson has worked for newspapers in Washington D.C., Sacramento, Calif., and Tampa, Fla., racking up state and national awards for writing, editing and design along the way. Tom also has been published in assorted sports magazines, and his work has been included in several annual “Best Sports Stories” collections. Most recently, his blogging for various websites on the 2016 election won a pair of top honors from the Florida Press Club. A University of Florida alumnus, St. Louis Cardinals fan and eager-if-haphazard golfer, Tom splits time between Tampa and Cashiers, N.C., with his wife of 40 years, college-age son, and Spencer, a yappy Shetland sheepdog.
There are some downsides though that you have to weigh, our credit scores did drop down to 630-680’s and some creditors list our payments as “late” for some reason. But CareOne said that the late status should change after about 3 months of consistent payments. Some creditors also list that your payments are being made by debt management program which I can assume does not look very good on your credit report.

Balance-transfer cards can help when trying to pay off credit card debt, because you can transfer thousands of dollars owed to a new card that offers a very low initial interest rate -- often 0%. That interest rate will be in effect for between six and 21 months, after which a more standard interest rate will apply. That standard rate will not necessarily be a great one, so you should seek cards that will charge you relatively low interest rate ranges following your teaser-rate period. Your credit score is likely to influence the interest rate you're given after the 0% rate expires, so this is another reason to get your score as high as you can.
If your expensive habit is smoking or drinking, that’s an easy one — quit. Alcohol and tobacco do nothing for you except stand between you and your long-term goals. If your expensive habit is slightly less incendiary – like a daily latte, restaurant lunches during work hours, or fast food — the best plan of attack is usually cutting way down with the goal of eliminating these behaviors or replacing them with something less expensive.
Want more examples? I like public speaking. I like good pizza more than probably anyone should. And I volunteered to be interviewed in a national magazine about my experience with living with and recovering from social anxiety, a mental health disorder I used to have. I’ve made many many mistakes, and will likely make many more. Those just aren’t any of them.
I am literally financially devastated. I have paid them thousands of dollars 90% of it went to them. When I asked them why they continually drained my account and caused the loss of my settlements they stated that they wanted to get our fee out of the way. WTF if I can’t make these large payments to my creditors each month what makes them think that I can make them humongous payments that was far more than what I was paying each month to all my creditors.
There's also a substantial risk associated with taking out a loan on your home, because the house secures the loan. When you owe unsecured debt, such as credit card debt, personal loan debt, or medical debt, there's nothing guaranteeing the loan except your promise to repay it. While lenders could sue you for unpaid debt and perhaps get an order to garnish wages or put a lien on your house, it's very unlikely your home could ever be put at risk of a forced sale because of unpaid unsecured debt. But when you've borrowed against your home, the house is collateral, and if you don't pay, the lender will probably foreclose and take the house. Converting unsecured debt to debt secured by your home isn't typically advisable for that reason. 

I have a rental duplex and it is underwater, owe about 85,000 worth about half that much. At 65 I am thinking about walking away because it is getting too costly to maintain. Detroit is in crisis and I don’t feel safe going there for rents. I spoke to my mortgage company and they stated they couldn’t help me under the President new laws for rental property. I am concern about my credit if I walk away, even at my age. When you are not rich you need good credit.
For example, when you initiate a debt management plan, you may be asked to close credit card accounts. Doing so changes your credit utilization ratio — the comparison between the total amount of credit you have available versus the amount you're actually using. Closing accounts lowers the amount of credit you have available (your credit limit), which increases your credit utilization rate and negatively impacts your credit score.
2 years ago my husband & I cut up all of our credit cards and contacted each Credit Card company to come up with a reasonable monthly pay plan and close out the account. We have been doing this fine ever since as it comes directly out of our checking account. However, we have recently come into enough money to settle all of our debt for probably 50%-75% of the amount originally owed. Because we are already in “payment mode” with these companies, it cannot hurt our credit anymore to go with a settlement offer, correct? Our goal is to pay off as many as possible with the money we have.
Bankruptcy and debt settlement can reduce or eliminate debts, but they severely impact your credit. However, continuing to struggle may actually be a slower, less effective way to get rid of the debt. Debt management doesn’t reduce debts, but its effect on your credit is less severe. And be aware that some types of debts typically can’t be erased or reduced: federal student loans, child support, and secured loans on cars and homes.
We all know that didn’t happen, and soon enough, the debt caught up with me. As I approached my 26th birthday, I maxed out with debt of around $80,000. All of a sudden, I couldn’t keep borrowing my way out of trouble anymore. At the same time, I realized that the stress of barely making my monthly payments and owing twice what I earned in a year was taking its toll.
I have a creditor that has reported my account as a charge off bad debt. Two years ago I had made an agreement with the creditors third party collection agency to pay the bad debt on a monthly basis. I have paid each month on time to the creditor, but they have not reported this, and now my credit score is sinking because of this. Is this right? I have made my payments on time and they refuse to have this changed. I had requested the creditor to please change the repoting, but they have refused. Is this right? By law are they able to do this?
No guarantees. Lenders usually want to work with you, but they can choose not to. This is especially true with debt settlement. You may contribute to the fund used to make a settlement offer for 6-8 months and then find out the lender won’t accept the offer. If you choose this route, be sure to get a written agreement from the lender that they will work with you.
The convenient answer is: When your debt is so small that you can handle it yourself by doing a better job of budgeting; or when your debt is so large that there isn’t enough income to pay for basic living needs AND make a payment toward your debt. The truth is that everyone’s circumstances are so different that an interview with a credit counselor is the only way to know whether you qualify for a DMP.
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