This company works with unsecured debt – typically credit cards – as well as medical debt, private student loans and personal loans. Its debt settlement plans require you to stop paying your creditors and instead make payments into an escrow account set up by National Debt Relief. You control the money in this account. After several months of making installments into this account the settlement firm will begin negotiating with your creditors.
After that first initial call with him I was contacted by a company called Clear One Advantage they were very pleasant in the beginning took all of my information and began debiting my account on a monthly basis in July of 2017 by September of 2017 not one of the accounts have been settled my phone was ringing off the hook my creditors emailing me as well, telling me that they’re willing to work with me, I just needed to contact them and they would see what they could do.
And yes, it’s not always that simple. There are people who deal with some scary, painful, and expensive health issues in a broken system that just makes it harder. It’s all too easy to become one of them. And there are people who’ve been dealt a bad hand in other ways, by growing up in generational poverty, starting out behind, and/or being thwarted at every turn by a lack of access to the advantages others take for granted or don’t even notice.
Get a second job or work overtime, if available. I’ll be blunt, second jobs are no fun, but they sure do help pay the bills. Think of how tired/stressed/soulless you feel after your 9-5 already; now imagine getting in your car, battling rush hour traffic, and putting in another four hours from 6 to 10. Then you get home around 11, just in time to watch the Daily Show and pass out.
Debt settlement is a process by which you can greatly reduce or maybe even eliminate the total amount of debt you are currently paying or committed to pay in the future. Solutions are available for various types of accounts, including credit card, medical, and even personal loans. Learn about debt settlement companies as well as the process that is available.

This is paramount to mapping out a plan to pay off your debt. There are two approaches that are worth considering.  The first is where you list your debts smallest to largest regardless of the interest rate. This is the method that we used to pay off $52,000 in debt in 18 months and it worked great because it helped us build momentum. When we paid off our first debt it put wind in our sails. Even though we had higher interest debts, this gave us something that was very powerful: the belief that we could get out of debt quickly if we stuck to the plan.
I doubt that would be the case. The main impact will be from closing those accounts. FICO doesn’t take into account that you are in credit counseling when calculating your credit score. In other words, you don’t get penalized specifically for credit counseling like you would for, say, a late payment or bankruptcy. Plus you’ll hopefully be learning how to live debt free so you don’t have to rely on credit cards again.
Avoid high monthly fees. Most debt management plans charge a nominal monthly fee to cover the administrative expenses. Depending on the number of creditors you have, the monthly fee may vary, but it generally should be between $2-5 per creditor or, at most, not more than $50 per month.[7] Make sure the agency doesn't charge any other maintenance fees (i.e. an annual fee) in addition to monthly fees.
Getting out of debt is a long-term commitment; there’s not an overnight solution. The most important step you can take is to develop a realistic plan and set a time-bound goal for paying down your debts. For example, you plan to pay off your $10,000 in credit card debt in three years by paying $280 toward your debt every month. However, make sure your goal is realistic for your budget. If you can’t afford that $280 per month, then you’ve set yourself up for failure and may need to consider extending your timeline to five years for a more affordable payment. Having your goal planned out and written down can go a long way to helping you successfully get out of 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.

To qualify for National Debt Relief, you must have at least $7,500 in debt and a demonstrable financial hardship that you cannot recover from. Financial hardship includes a divorce, unemployment, loss of income, the death of a spouse and unpaid taxes. National Debt Relief uses this proof of your financial hardship as leverage to negotiate with your creditors.

If you are really unable to repay your debts because you have no source of income at the moment or if there is just no realistic way that you could repay them in two to three years the final option is to file for bankruptcy. However, this would tarnish your credit history very seriously. You will be unable to get new credit for at least two or three years after your bankruptcy and when you do it will come with a very high interest rate. You will be required to pay more for your auto insurance and may have a problem renting a house or apartment. The bankruptcy will stay in your credit reports for 10 years and in your personal file for the rest of your life. Many employers now routinely check the files of prospective employees and some may decide to not hire you if they see a bankruptcy in your history.
High-interest credit card debt: Credit card debt is revolving debt; you charge as much as you want up to your credit limits and make monthly payments. The average interest rate on credit cards was close to 17% as of July 2018. Because credit card debt provides no benefit and rates are substantially higher than investments typically produce, aggressive early payoff is smart. 
Once you've got a list of counseling agencies you might do business with, check each one out with your state Attorney General and local consumer protection agency. They can tell you if consumers have filed complaints about any one of them. (If there are no complaints about them, don't consider it a guarantee that they're legitimate.) The United States Trustee Program also keeps a list of credit counseling agencies approved to provide pre-bankruptcy counseling. After you've done your background investigation, you will want to  interview the final "candidates."
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.
I have been with National Debt Relief Service and thought I would save 40% to 50% of my debt. but, so far, with 23% customer fees among others, the 7 I have settled for $7333.64 out of $10,388 with their fees came to a net savings of less than $3055. The fees are very high and now that I am signed up, I cannot leave since they say the creditors would not honor the settlement amounts.

“Clients who are able to stay with the program and get all their debt settled realize approximate savings of 50% before fees, or 30% including our fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.”

If you're not able to secure a lower interest rate from your current credit card company, you may be able to transfer outstanding credit card balances to a card with a lower or zero interest rate (called a balance transfer credit card). Credit card companies often offer promotional rates for a limited period in exchange for you transferring a balance from an existing card to a new one. You'll need to meet the balance transfer card company's qualifications, and will probably need to pay a transfer fee that equals about 3 percent of the balance you're transferring.
As a debt junkie for almost ten years, I ran up credit card after credit card living like my salary was about four times its actual size. Stupid things I bought on credit included flying lessons, weekends in Las Vegas, and a brand new pickup truck. Hey, I never said I wasn’t having fun. (Remember, I’m on the other side of 25 now, so I started college pre-recession… during the dot-com boom. Back then, I actually thought I could graduate with a sociology major and find a $75k a year job—because I knew people who did!)

If you're looking for help dealing with high interest rates and difficult-to-manage debt, you may be wondering if debt settlement is a good option for you. Some debt settlement companies advertise that they will negotiate with lenders on your behalf to get your payments reduced. While debt settlement may make it easier for you to pay off your debt, it does have some significant credit consequences.
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.
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.
The creditors don’t have the time or manpower to negotiate with every one of their customers individually. They work with credit counseling agencies like us to create a set of standard concessions that we may offer to clients when appropriate. The creditors also understand that we provide counseling and education, which makes our clients more likely to succeed in repaying their debts.
You’ll still need good credit to get a personal loan, but you may be able to get a loan when you wouldn’t be approved for a credit card. And if you’ve got excellent credit, you might even get a lower interest rate with a personal loan. Either way, the thing I love about personal loans is that you get a fixed term, usually three or five years, and monthly payment—you can’t be tempted to make minimum payments and you know your debt will be paid off at the end of the term.
I was referred to Premier by a family member. During my free consultation I no longer felt bad about my finances, Rikki made me feel better about taking the steps needed to move forward and that I was not alone. You don’t realize how many people are struggling or have struggled until you reach out for help. Thank you so much for helping me get back on track!
Bill “No Pay” Fay has lived a meager financial existence his entire life. He started writing/bragging about it seven years ago, helping birth Debt.org into existence as the site’s original “Frugal Man.” Prior to that, he spent more than 30 years covering college and professional sports, which are the fantasy worlds of finance. His work has been published by the Associated Press, New York Times, Washington Post, Chicago Tribune, Sports Illustrated and Sporting News, among others. His interest in sports has waned some, but his interest in never reaching for his wallet is as passionate as ever. Bill can be reached at bfay@debt.org.
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