Hi. We have about $45k in debt , 10 of which is a trailer loan. Daughter is in first year of college. If I decide to see a credit counselor would it hurt her chances of getting fafsa ??? Loans in her name I believe because she is over 18, but we don’t want her owing a lot just coming out of college either, and we have a son graduating in a year as well. This has stressed me out to even thinking of claiming bankruptcy but I’m not going to go to that extreme…..help!! Suggestions? Owe $300k on house, own all cars.


A debt management program is different from debt consolidation in that it consolidates your payments but not your loan (you are not taking out a new loan as you would in debt consolidation). These programs enable debtors to work one-on-one with a financial professional to get your financial obligations under control and are created for consumers by nonprofit credit counseling agencies.
Throughout all the years I carried this debt around with me, I never wanted to be in debt. But it wasn’t until I met the three criteria above that I was able to do something about it. First, I had to stop living in denial, telling myself my debt “wasn’t that bad.” I needed a reality check and to stare down exactly how much debt I had and what it would take to get out.

Finally, you should know there’s a chance your credit can still suffer. Technically, entering a debt management plan shouldn’t hurt your credit score. But if your debt management company ever misses a payment on your behalf, your score will take a hit. Also, prospective lenders may shy away from making loans if they see a notation on your credit report that you’re in a debt management program.
Hi everyone, in the UK we have student loans, but these are paid back through your salary when you start earning over £15,000 Gross Salary. Depending on when the loan was taken out, interest rates vary from 1-3% (so quite low). Basically if you’re not working, they cant take the money from you. Is this how it works in the US? Great site by the way it really puts things into perspective.
Compare debt settlement vs. debt consolidation programs as they have differences between the two. One or the other may be a better option for you and your family, and it depends on your personal financial situation. Get information about the pros and cons of these two approaches. Read tips on which option may be the best option for you and your situation. Compare debt settlement and consolidation.
Everyone has bills and most everyone wants to get out of debt, but some people simply can’t get a focused. It’s not a priority for them. Remedy: The best solution could be to consolidate your debts and make just one payment every month. Another way to get focused would be to take a piece of paper the size of a credit card and write down the five debts you want to get rid of. Tape that piece of paper to your credit card. Every time you reach for that card, you’ll be reminded that you’re adding, not subtracting to the problems on that page.

Get the answers to the most common questions on credit card bill and debt consolidation. This can be one solution to use, especially when the interest rates are lower. The process can help you decide whether taking the approach of credit card consolidation is right for you as just maybe it can help you in your personal and financial situation. Find a list of questions about credit card consolidation.
I have nothing but great things to say about my time at NDR. In my first six month, there was a bit of a learning curve, but I had a great team and management behind in me who encouraged me to push myself and grow. An exciting aspect of this company is the tremendous growth taking place. In my short time here, I was able to develop the skills necessary to move up and become a team lead. I've worked many jobs on the phone,...
The second thing that you can do is trim your expenses. Go over each line item on your budget and ask yourself, “how can I make this number smaller?” It may involve cancelling services that you rarely use like a gym membership, Netflix subscription, etc. It might even involve reducing the amount of times that you eat out at restaurants each month. The amount that you slash depends upon your commitment level to getting out of debt.  The more committed you are, the easier it will be for you to give up some of the unnecessary amenities in life. You might not even need to sacrifice much if you can find these items or services for less. Check out Clark’s Free and Cheap List to help you with this process.

There are assistance programs for car owners that have poor credit scores. Programs can help them make a payment on an existing loan or debt obligation. Or if someone has bad credit (or no credit history) and they are in the market to purchase an automobile, then assistance is available with that as well. Find a list of programs that help families with poor credit either buy a car or make a payment.
Kalkowski recommends finding a nonprofit rather than a for-profit agency. Reputable companies may be accredited or certified by one of three organizations: The National Foundation for Credit Counseling, the Financial Counseling Association of America or the Council on Accreditation. Consumers can also check the Better Business Bureau for company ratings and reviews or discuss the matter with trusted friends and family members who may be able to make a recommendation.
National Debt Relief recently refunded part of the money that was saved in my account before I terminated my agreement with the company. I found this action on their part to be quite surprising and very much appreciated. This leads me to believe that they do have the best interest of their customers at heart. I have chosen to work with another company in becoming debt free and am very thankful for the services provided to me from National Debt Relief.

Credit card modifications are becoming more common. For example, Bank of America expects to modify the credit card terms of over 1 million cardholders, Chase is rewriting the terms of thousands of card agreements, and almost every other lender as well as bank offers some form of modifications. It is more possible than ever today to get out of debt with help from credit card issuers. Continue learning about credit card modifications.
Although there is variation from country to country and even in regions within country, consumer debt is primarily made up of home loans, credit card debt and car loans.[3] Credit counseling includes an array of services to address consumer debt that is not within the debtor's ability to pay, such as education about credi personal finance, budgeting and debt management. In addition to education, a popular credit counseling option is the ‘‘Debt management plan’’ (‘‘DMP’’, known in the United Kingdom as the Individual voluntary arrangement or "IVA"). In order to initiate a DMP, a consumer would authorize the credit counselor to contact each of the consumer’s unsecured creditors and negotiate with each creditor to lower the consumer’s monthly payment amount, to lower the interest rate, and to waive any outstanding late fees. The debt was then ‘‘consolidated’’ into a single payment.[1]

Debt negotiation: If you choose this option, National Debt Relief will negotiate with your lenders in order to either lessen your debt or make it easier for you to make payments without incurring a lot of fees and interest. Since National Debt Relief has been around so long, they have a good track record with various lenders and have the relationships built for good negotiations.
Whenever you are dealing with a company that deals with debt or even money, people tend to have strong opinions. When you are dealing with risky procedures like debt settlement and bankruptcy, those opinions get even stronger. Generally, National Debt Relief reviews are good among debt relief services and it is one of the most trusted of the debt relief program services out there. On the flip side, there are a lot of people out there who feel scammed by National Debt Relief. Part of that is people who didn’t understand the risks involved. Part of it is people who didn’t get the results they were looking for. And part of it is probably National Debt Relief’s fault.

It’s also worth noting that working with debt counselors doesn’t negatively impact your ability to qualify for new financing. Even if you enroll in a debt management program, you can still get approved for loans, such as a mortgage or an auto loan. You can’t open new credit accounts during enrollment. However, you can get approved for major financing to purchase a home or car or to fund a higher education. This way, you don’t have to put your life on hold while you pay off your credit card debt.
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 (:
A debt collector generally is a person or company that regularly collects debts owed to others, usually when those debts are past-due. This includes collection agencies, lawyers who collect debts as part of their business, and companies that buy delinquent debts and then try to collect them. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.
The company is clear about average fees ($40 for setup and $25 monthly, not to exceed $75 and $50, respectively) as well as average interest-rate and payment reductions on its website. They also publish detailed “transparency reports” that include debt management dropout rates, savings rates, and client satisfaction rates tracked over several years.

Another option is consolidating your debts into one manageable account. The main purpose of this is to eliminate the higher interest rate debts, arrive at lower monthly payments and allow you to concentrate on making just one payment. However, this does nothing to your total balance. What you will be doing is shifting all of your debts into just one account.
Don’t refinance Federal loans unless you are very comfortable with your ability to repay. Think hard about the chances you won’t be able to make payments for a few months. Once you refinance student loans, you may lose flexible Federal payment options that can help you if you genuinely can’t afford the payments you have today. Check the Federal loan repayment estimator to make sure you see all the Federal options you have right now.

The federal government allows you to consolidate eligible federal student loan debt from multiple loans into one big loan for convenience. Doing so will not lower your interest rate -- the new rate on the consolidation loan is determined by a weighted average of debt you're consolidating -- but it makes sense if you have many loans from multiple years of school and keeping track of all of them is difficult. 


Our debt counselors must complete intensive financial counseling and become certified by the NFCC. Besides being certified, many of InCharge’s credit counselors have over 10 years of experience as a financial counselor. They’ve helped people through every kind of financial downturn, from losing a loved one to catastrophic illness, to job loss. They can help you too.
The debt management program itself is not reported to credit bureaus and does not factor into credit scores. The largest % of anyone’s credit score is payment history and with a debt management program, our goal is to make on time payments to liquidate your debt in a reasonable amount of time. Initially, your score may dip when lines of credit are closed, however, people on a debt management program typically see their scores increase over time as they make on-time payments each month.
Credit Score Issues: One thing is certain: your credit score will be damaged. The lender, collector or credit-card company will report the debt as “settled for less than agreed’’ or “settlement accepted’’ for seven years. Also, even though you are dealing with the debt-settlement company for payments, the lenders will report late-payment status updates to the credit bureaus. That could be the case until the account is actually settled.
We find that because our financial counseling is free, confidential, and carries no obligation, the best course of action if you may be interested in a Debt Management Plan is to call and speak directly to one of our certified coaches. In addition to the valuable budgeting assistance, we will help you assess whether a DMP is the right path for you.
Through a nonprofit credit-counseling agency, you can work with a counselor to resolve your financial problems on your own, says Bruce McClary, vice president of public relations and external affairs at the National Foundation for Credit Counseling. Or you can enter what’s called a debt management plan. Through that plan, you can consolidate your credit card payments and get the cards’ interest rates reduced, making your financial obligations easier to tackle.

The non-profits are a great place to call for access to various services, including credit, budget, debt, and general financial counseling. After applying, a certified, highly trained counselor will explore with you all of the options available that can help you get back on track with paying various bills you may be responsible for making. Assistance will be offered in various languages, including Spanish. They help with home loans, credit card, and medical debts among other needs. Also receive assistance in eliminating or consolidating payday loans.
But having this mini-emergency fund before devoting extra to your debt is vital to breaking the debt cycle. If you don't have some savings, you might find yourself trapped in a cycle you can never escape. You'll start paying off debt, and then your car breaks down, and you'll end up right back where you started with the same level of debt or more. This is discouraging, can cause you to get off track on repayment, and can make it impossible to ever make real progress.
To get out of debt using the ladder method, start by attacking the balance on the account that charges the highest interest rate, McClary says. While you’re ramping up payments on that account, you make minimum payments on the others. When your highest-interest balance is gone, you move down a rung of the ladder and apply all your extra payments to the account with the next highest rate. You repeat the process until all your debt is eliminated.
I am in my mid 50’s and am considering early retirement. It is very rewarding to be debt free. There were a couple rules I lived by. I would not charge something that would be gone before I got the bill. Such as meals, drinks, vacations, If I could not pay cash I waited until I could. I still refuse to to pay interest on anything that depreciates. Which is almost everything except a house. Why pay more (interest) for something that is going to be worth less? I am very fortunate that I have been able to pay off my home, have zero debt, and have enough in investments and savings that I will be able to retire about 10 years early. Keep up the work, it does pay off in the long run.

Bankruptcy is not the credit catastrophe it once was. Certainly filing bankruptcy does not improve your credit and your credit score will suffer if you file. However, you can rebuild your credit within a few years by charging small amounts on a credit card and paying the bill on time every month. Taking out a personal or auto loan (not payday loans) can help improve your score quickly as well if you pay your bill on time every month. After a few years of doing this, your credit score should be in the 700 range. Post bankruptcy, you can thrive and not merely survive if you are diligent about getting back on the road to financial recovery.
There are, however, some downsides. If you die before the loan is paid back, your beneficiaries receive less money, because the outstanding balance of the loan -- including interest -- is taken out of the death benefit. Plus, since interest is added to the loan's balance if you don't make monthly payments large enough to cover it, the amount you owe could grow to exceed the cash value of the policy and cause the policy to lapse. This could lead to a big tax bill, as you'd have to pay taxes on the cash value of a lapsed policy. 
Take one more look around the house. Do you really need a $100 a month worth of cable TV? Does paying $50-$75 for a round of golf make sense? Can you mow the yard and clean the house yourself? How about exercising without a gym membership? All those things are nice to have … if you’re not in debt. Dump them until you’ve paid off the last of your credit cards.
Accept a plan only if you can fulfill your requirements. If you can't make the monthly payment the program requires, don't enroll. Ask if they can get it any lower, contact your creditors yourself, and/or check with another debt management agency. Again, be aware that many debt management plans require you to avoid taking on any additional debt or at least any additional revolving credit debt (i.e. credit cards, store charge accounts). Understand the terms and conditions, and make sure you can follow through on them.
I’ve done some research on debt consolidation loans from financial institutions, and have found one for a $10,000 loan @ $197/month for 5 years, fixed rate of 6.99%. This will allow us to consolidate all of our credit card & medical bill debt (normally costing around $1000-1500/month) and allow us the cash to get her car fixed, paying one low monthly cost. Once we get her car fixed we are going to start paying more than the $197/month to pay the loan off quicker.

On average, National Debt Relief can reduce enrolled debt by around 49 percent which is slightly higher than Freedom and New Era. You will pay fees of between 15 to 25 percent on the amount that is settled. This debt relief company doesn’t charge any upfront fees, so you’ll only pay on the debts that are settled. Keep in mind, though, that the fees are in addition to the settlement, so a 20 percent fee in addition to a 49 percent settlement ends up being 69 percent of the original amount.
This is an easy way to make the debt repayment process less painful if you're able to do it: Reduce your interest rates. Changing the interest rate on your mortgage requires refinancing -- but it might be worth looking into. One rule of thumb suggests that it's worth it if the interest rate you're likely to get is a percentage point lower than the one you have.
Report any problems you have with a debt collection company to your State Attorney General's Office, the Federal Trade Commission (FTC), and the Consumer Financial Protection Bureau (CFPB). Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act. Your state Attorney General’s office can help you find out your rights under your state’s law.
Put extra money toward the credit card or debt with the smallest balance. You'll be able to pay it off quickly, reducing the total number of accounts you have to deal with, and giving yourself the mental boost of successfully eliminating part of your debt (though you'll pay more interest in the long run than if you were to pay off debt with the highest interest rate first.)
I have my creditors calling me 30 times a day threatening me. And every single one of them told me that it never heard from Clear one advantage when I emailed clear one Advantage for documentation of each time they contacted my creditors, that their website it says “In Negotiations” they have to have some kind of documentation of each time that they called or emailed or mailed something to my creditors and I wanted copies. I received an email back from them saying they didn’t have any documentation.
What Makes Me a Good Candidate for Debt Negotiation? A debt negotiation program is certainly not for everyone. Qualified candidates are those who have a legitimate financial hardship, which has caused them to fall behind on their payments to creditors, or will cause them to fall behind in the near future. National Debt Relief will not welcome anyone into the program that has the intentions of defrauding, deceiving, or swindling their creditors. We only represent consumers who are truly in need of our services and stand to significantly improve their financial situation.
Many approved credit counseling agencies provide counseling services in languages other than English. For a list of agencies and the languages that they offer, select the language from the drop down list below and click "Go". If you are looking for a language that is not found on the drop down list, please contact the Credit Counseling Unit at the Executive Office for U.S. Trustees at ust.cc.help@usdoj.gov.
American Consumer Credit Counseling (ACCC) provides nonprofit credit counseling and debt reduction services for consumers with credit problems who want to know how to pay off credit cards and how to get out of debt. Our certified credit counselors have helped thousands of individuals and families nationwide pay off credit card balances and unsecured debt through credit card relief programs and credit card debt solutions. Our debt management plans provide a kind of personal debt consolidation strategy for help getting out of credit card debt, and we offer a wide variety of financial education services to consumers who need help getting out of debt and managing their finances more effectively.
Revolving (credit card) debt can have a great impact on credit scores as it will increase your balance-to-limit ratio and lower the amount of available credit that you have. The higher your revolving balances inch up to the limits, the more it hurts the credit scores. Depending on the situation and your credit scores, a bankruptcy, debt consolidation plan, or a setup of a budget and timeframe for getting out of debt could be options. Once you’re ankle-deep in revolving debt, it can be tricky to dig yourself out so getting professional advice is important.
Hm, feel free to email me if you like, but here are a few questions/suggestions. What have you been living on while waiting? And how much are you allowed to earn above disability? While it can definitely be very tough to work while disabled, sometimes it is possible, and there are flexible ways to earn. (For example, blogging, although that’s not a quick way to do so.) I suggest brainstorming ways to bring in more and also ways to cut expenses, such as maybe getting a roommate or two to reduce your basic costs for housing & day-to-day living.
Pros: National Debt Relief is one of the most affordable debt relief programs. It has a plethora of options to choose from, depending on your debt. National Debt Relief also is offered in 34 states, which is more than most debt relief programs. National Debt Relief also has one of the best reputations in the debt relief world. And the obvious pro, National Debt Relief can help you pay down your mountain of debt.
But it’s more than a method for paying off bills. The debt snowball is designed to help you change how you behave with money so you never go into debt again. It forces you to stay intentional about paying one bill at a time until you’re debt-free. And it gives you power over your debt. When you pay off that first bill and move on to the next, you’ll see that debt is not the boss of your money. You are. 
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