If you have poor credit/no credit, unfortunately you won’t likely be able to qualify for many of these other options. However, there are a number of companies that specialize in helping people exactly like you. These companies are called “Debt Relief” services and are for those with over $7,500 in credit cards, medical bills, taxes, and other unsecured debts and poor/no credit. 


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.

If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan (DMP). A DMP alone is not credit counseling, and DMPs are not for everyone. Don’t sign up for one of these plans unless and until a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money. Even if a DMP is appropriate for you, a reputable credit counseling organization still can help you create a budget and teach you money management skills.
For most people who are struggling with debt, non-profit credit counseling is the better option. You pay  fewer out-of-pocket costs, which can be helpful. That last thing you need as you get out of debt is a big bill. If you’re looking for non-profit counseling services, fill out the form at the top of this page. Debt.com only refers you to the best accredited non-profit consumer credit counseling services.
Once you’ve signed up for a debt settlement program, you’ll get access to the client dashboard that allows you to track how much you’ve saved and which accounts have been settled. It also provides you with financial tools such as calculators and budget worksheets. You’ll also be given form letters to send to your creditors, informing them that you’re in financial hardship and requesting that they not contact you to collect.
Debt Settlement is making a deal with creditors to pay less than the total balance owed. As attractive as that sounds, there are some severe penalties, notably to your credit score and tax liabilities. Debt settlement costs include attorney fees (typically 10-20% of amount settled) and taxes owed on forgiven debt. Debt settlement negatively impacts credit for several years.
Here it is nine months later I have paid them a tremendous amount of money and of that money they only paid $325 to 2 creditors one of them only one payment of $25 the balance of the money they paid themselves oh and there is a $8.35 monthly fee for the account they hold my money in. They only had two accounts settled but now both lost because they said there was no money to pay them.
It’s hard at first, because most of us aren’t used to doing that. (Especially if we’re living on a low income.) But it’s absolutely doable, and gets easier with practice. And once you start paying stuff off, it becomes even easier because your money isn’t flying out the door to service debt. You have MORE money available, which makes things easier still. It’s the exact opposite of a vicious circle.
The big advantage of the debt snowball is scoring quick wins. Science backs up the idea that this is the best approach, because you'll stay more motivated as you see debt balances paid off. But there's an obvious downside: Your smallest debt may not have the highest interest rate. If you're waiting longer to pay off high-interest debt while focusing on lower-rate debts, you'll pay more interest over time.  
Credit Limitation: This option only works if you have good credit; excellent credit is better. Balance transfer credit cards offer 0% APR on balance transfers when you open the account. An excellent credit score means you qualify for the longest 0% APR introductory period possible. Some cards have promotions that run up to 18 or 24 months. That gives you up to two years to pay off your debt interest-free.
If you struggle with learning how to develop a good budget so you can get your debts paid on time each month, you may consider using a credit counselor to get back on track. Consumer credit counseling agencies are nonprofits that will help you find a workable solution to financial problems. However, some nonprofit credit agencies charge excessive fees that are not applied to debt reduction.
As you read through each item, you'll probably think "This will only save me $5 or $10 a month." If you can cut back on 10 different things and save even $100 a month, that's an extra $100 you can put towards your debt. Not all of these will apply to you and that's ok. Adopt as many as you can, even if it means making a small sacrifice. The more of these you can adopt, the more money you'll have to accomplish your goal.

Advantage Credit Counseling Service (CCS) is a Non-Profit Credit Counseling agency that educates consumers about debt management, bankruptcy, and how to properly manage credit. We’ve been helping people take control of their finances since 1968. As a 501(c)3 organization, our agency provides professional, meaningful and confidential consumer education, credit counseling, and develops effective debt reduction programs. We are specialists in teaching individuals about wise money management and the responsible use of credit.

You can find a state-by-state list of government-approved organizations at the U.S. Trustee Program, the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees. Also, before you file a Chapter 7 bankruptcy case, you must satisfy a "means test." This test requires you to confirm that your income does not exceed a certain amount. The amount varies by state and is publicized by the U.S. Trustee Program.
I recently became fed up with the credit card debt that I have been carrying for 6 years and have *finally* taken action to eliminate it, such as making a budget (and sticking to it!), trying to negotiate a lower APR rate, selling stuff (au revoir, gitane bicycle) and making additional payments on my credit cards. This article was EXACTLY what I needed to read. It’s affirmation that I’m on the right track (:
My first week of training was taught by the Chief Sales Officer. That set the tone for how leadership operates. They care and are involved. All my coworkers and leadership are willing to help regardless of what team you are on and who you report to. There is A LOT of recognition for all kinds of successes. There are plenty of spiffs throughout the week/month. The money potential is real. If you are a worker, willing...
Although a debt settlement company may be able to settle one or more of your debts, these programs can be very risky and have serious negative financial consequences for consumers. Additionally, some debt settlement companies deceive consumers by making promises they do not keep and engaging in other illegal conduct (like charging fees before obtaining any settlements, in violation of the TSR). For information, read Coping with Debt and Settling Credit Card Debts.
NerdWallet recommends the 50/30/20 budget: Keep essential expenses, like housing, to 50% of your income. Then allocate 30% for wants, and use 20% for savings and debt pay-down. Since you’re focused on paying off your debt, you may decide to use money from your wants category to make extra debt payments. That will wipe out debt faster and help you save on interest.

Some of them include debt consolidation, foreclosure and mortgage delinquency counseling, and budgeting. Review alternatives to a foreclosure that may be available to you such as mortgage modification. A counselor can sometimes work directly with your creditor or bank to enter into installment plans with them, or they help facilitate a solution with all impacted parties.

A DMP is a payment plan that helps you repay your debts. By using a non-profit credit counseling agency to pay down and off your debt, creditors may also offer to reduce or waive fees, finance charges, or interest rates to ensure success on the plan. Simply, under the plan, you deposit a consolidated payment with us each month, which we in turn disburse to all of your creditors. We also handle calls from your creditors directly. The vast majority of our payment processing is electronic, so funds are transferred directly to the creditors without delay.
The big downside is, if you need to leave your job for any reason, including if you're terminated, you must pay back the 401(k) loan quickly -- often within 60 days. If you don't, the unpaid loan is treated as a taxable distribution and you'd have to pay a 10% penalty. Not only can a 401(k) loan trap you in your job, but you could also hurt your retirement savings goals, because you'll have less money invested and growing. 
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.

Not into starting your own business? Then consider becoming a driver for Lyft or Uber. A pizza delivery job at night could also bring in extra money. You can even deliver other types of food in your spare time by working for places like uberEATS or Grubhub. Sure, you’ll have to put aside your pride and give up some nights and weekends of downtime. But that’s a small sacrifice for extra cash in your pocket.
We do not have a minimum debt requirement for the debt management program. Our goal is to create a payment plan that is affordable and enables you to pay off your debt within a three to five year period. Our clients have, on average, credit card debt of $15,000. Though we have enrolled clients with as little as $1000 in debt, and more than $100,000 in debt. Our clients have an average annual income of $36,000.

Bankruptcy: While National Debt Relief can’t actually file bankruptcy for you, it can help you through the steps you will need to take in order to file for bankruptcy. The first step is a detailed explanation of what bankruptcy is and if you should even consider filing for it. This information is all offered free on the National Debt Relief website before you even sign up. The next step is walking you through the procedure of filing for bankruptcy, which National Debt Relief has a lot of experience doing.
Get everything in writing. Before enrolling in a plan, make sure you get a contract. Get all verbal promises in writing, and read the contract very carefully to make sure the terms are the same as those you discussed. Watch very carefully for hidden fees. If a company won't send you a contract before you make your first monthly payment, don't pay them and go elsewhere for help.
And you’re not alone. The average family who carries a debt has more than $16,000 in credit card debt. We have free advice and offer professional solutions, so you can find the best way to pay off or settle your credit card debt. Available programs include debt management, debt settlement, debt consolidation loans and even do-it-yourself solutions where you can learn the best way to pay off your debt.
Debt settlement companies typically ask you to stop paying your creditors and instead put the money in an account they control. Each creditor is approached as the money accumulates in your account and you fall further and further behind on payments. Fear of getting nothing at all may motivate the creditor to accept a smaller lump-sum offer and agree not to pursue you for the rest.
It is also important to know that National Debt Relief uses a company called Global Client Solutions to manage your payments as a third party processor and trust account servicer.  This company has a history of working with many debt settlement companies who have been sued in the state of Washington and across the country for violating various debt adjusting and consumer protection laws.  Global Client Solutions has also been sued itself on a national level by the Consumer Financial Protection Bureau and in the state of Washington.
In a DMP, you deposit money each month with the credit counseling organization. It uses your deposits to pay your unsecured debts, like your credit card bills, student loans, and medical bills, according to a payment schedule the counselor develops with you and your creditors. Your creditors may agree to lower your interest rates or waive certain fees. But it’s a good idea to check with all your creditors to be sure they offer the concessions that a credit counseling organization describes to you. A successful DMP requires you to make regular, timely payments; it could take 48 months or more to complete your DMP. Ask the credit counselor to estimate how long it will take for you to complete the plan. You may have to agree not to apply for — or use — any additional credit while you’re participating in the plan.
Apprisen shines with a low-fee guarantee (never more than $35 for setup and $35 monthly), service in all 50 states, online chat, a mobile app for account management, and 40 branches in 10 states. Founded in 1955, they claim to be the “oldest nonprofit credit counseling organization in the country” and are accredited by the BBB, NFCC, and COA. Despite their many positives, I would have liked to see more thorough descriptions and FAQs regarding their debt management plan.
Does This Affect My Credit? Yes, debt negotiation will negatively affect your credit temporarily and it can be improved after you have completed the program and you are debt free. The effects are not as severe as bankruptcy. If you are already behind on your bills, your credit score will already be lower so the effects of our program may not be as severe. You have to decide if it’s better to resolve your debt now at a lower cost and then rebuild your credit.

A debt management plan allows you to pay your unsecured debts — typically credit cards — in full, but often at a reduced interest rate or with fees waived. You make a single payment each month to a credit counseling agency, which distributes it among your creditors. Credit counselors and credit card companies have longstanding agreements in place to help debt management clients.
Freedom Debt Relief Disclosure: Clients who make all their monthly program deposits pay approximately 50 percent of their enrolled balance before fees, or 65 percent to 85 percent including fees, over 24 to 48 months (some programs lengths can go higher). Not all clients are able to complete our program for various reasons, including their ability to save sufficient funds. Our estimates are based on prior results, which will vary depending on your specific circumstances. We do not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Our service is not available in all states and our fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. The use of debt settlement services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements we obtain on your behalf resolve the entire account, including all accrued fees and interest. C.P.D. Reg. No. T.S. 12-03825. 
Credit card forbearance programs are offered by companies. Once again, the major lenders including Chase, Bank of America, Citibank, Discover Card, and others offer credit card forbearance programs that may allow consumers to delay monthly payments from six months to over a year. These programs may also lower interest rates, reduce a customer’s minimum monthly payment, or waive all fees.
While repaying your debt more slowly or at a lower interest rate is better than not paying it at all, a debt management plan can still adversely impact credit scores. Although enrollment in a debt management plan isn't a factor in credit scoring models, it can affect other aspects of your credit that are common factors in many credit scoring models.
Walking or biking to work have benefits beyond just saving money too. More exercise, less pollution, less aggravation. When I worked in an office, I always walked to and from work. Sometimes as much as 45 minutes each way and in all kinds of weather. Such was my mania to avoid giving the MTA one cent I didn’t have to give their crummy service. And to save money of course.

Warning: Debt settlement may well leave you deeper in debt than you were when you started. Most debt settlement companies will ask you to stop paying your debts in order to get creditors to negotiate and to collect the funds required for a settlement. This can have a negative effect on your credit score and may result in the creditor or debt collector filing a lawsuit while you are collecting settlement funds. And if you stop making payments on a credit card, late fees and interest will be added to the debt each month. If you exceed your credit limit, additional fees and charges may apply. This can cause your original debt to increase.

I’m also going to start back up my college business. I ran a small business in college that brought in a couple hundred dollars a month. Although in college I did it by travelling, I could provide similar resources and work via a web site. I only work 14 days a month at my job, so I know I have time to build this and work towards it. Hopefully it can generate an additional $500 per month for me as well which will greatly help!

A debt management plan is a carefully constructed payment schedule that consolidates credit card and other unsecured debts into one affordable monthly payment. Borrowers in a debt management program agree to stop using credit cards in exchange for lower interest rates and more affordable monthly payments. Nonprofit debt management programs enable borrowers to repay their debt in 3-5 years.
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