Debt consolidation loans can help you pay off bills as well. They are a type of personal loan in which you can consolidate all types of outstanding debts as well as other expenses, including credit cards, other higher priced borrowing, and medical bills. The individual will take out a new loan, at a lower interest rate, and use that money to pay off other accounts. This will reduce your monthly payment, and therefore will save you money. Debt consolidation loans are just one option available to help consumers get better control of their finances.
If you are overwhelmed by debt, you might consider hiring a debt settlement company to help you. Debt settlement companies negotiate payments with each of your creditors. You then pay a monthly sum to the debt settlement company, who distributes your payment among your creditors. By doing this, you can get out of debt faster. Here’s a breakdown of how the companies compare against each other and other debt relief companies.

Credit score is not a factor with credit counseling. The initial consultation, even with a credit check, won’t affect your score. There is no minimum score requirement to enroll in a debt management program. In addition, when done correctly the program has either a neutral or positive effect on your credit. In other words, if you still have good or excellent credit, this program won’t set you back.


Debt settlement sounds like a sexy option to consolidate debt. Who wouldn’t want to pay half of what you owe on credit card debt? But this is considered a desperation measure for a reason. The ads boasting that settlement companies like National Debt Relief can get 50% of your debt forgiven, don’t tell the whole story. That figure doesn’t include the fees you will pay, the penalties you incur while settlement negotiations take place and whether a creditor will even accept the offers made. Do all the math before you choose this option.
Speaking with consumer credit counseling agencies is just the beginning. Next, you have to determine whether the services are actually what you need, or if you can accomplish more on your own. Remember, credit counseling doesn't do anything that you can't do; they simply provide guidance for the best approach to managing your debt. You can contact creditors and negotiate the payment terms of your account. Anybody can do this on their own, but sometimes people need a little extra help staying on track.
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.
Credit counseling works because it provides people with the time and tools to focus on their financial situation. The nonprofit version of this service provides a holistic, high-level view of an individual or family’s debts, assets, income and expenses before recommending a debt relief strategy. These services work because the solutions provided are personalized and specific, and because counselors are well-trained and non-biased.
The National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies lists affiliated legitimate credit counseling services across the United States. Also, consumers can check with their state's attorney general’s office and the local consumer protection agency to determine if consumers have filed complaints about a credit counseling organization. As another resource, the United States Trustee Program keeps a list of credit counseling agencies approved to provide pre-bankruptcy counseling. Bankruptcy law mandates that anyone filing for bankruptcy must first undergo credit counseling.
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.
Fully certified. The National Foundation for Credit Counseling (NFCC) is the largest, longest serving and most well-respected credit counseling network in the country. All Clearpoint counselors must be NFCC-certified, which means they have studied counseling principles, understand consumer rights and responsibilities, and have passed examinations showing their proficiency in these and other areas.

Happily, consumer protection laws now require credit card issuers to disclose the precise length of time that the "minimum payment plan" takes to work for each customer. When you get your next credit card bill, look for the box that says something like "If you make only the minimum payment on this balance, you will pay a total of 'X' dollars and take 'Y' years to pay off your balance."
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.
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.
To answer your question, though, how defaulting on season tickets would impact your credit would depend on whether or not the organization/team reports the incident/account to the credit reporting agencies. If they report the incident as a collection it will have a negative impact on credit standing and hurt your credit score. It won’t impact current accounts but if the impact is significant and your credit score takes a severe hit, it could impact future loans, their interest rates and your ability to qualify for them.

Can I Negotiate With My Creditors On My Own? Yes, you can negotiate with your creditors yourself and save yourself an extra 18-25% off your debt. (Our fee is 18-25% of the debt amount depending on the state they live in and the amount of debt they have.) Not everyone wants to talk to their creditors on a regular basis so they trust us to do it for them. Our debt negotiators have extensive knowledge in Federal & State consumer laws & exercise the Fair Credit Reporting Act, Fair Credit Billing Act, as well as the Fair Debt Collection Practices Act to help settle your debt.


If a consumer’s financial problems resulted from too much debt or inability to repay their debts, a credit counseling agency might recommend enrollment in a debt management plan (DMP). A certified credit counselor will review a consumer's overall financial situation and offer customized money management advice. This advice may include a DMP designed for the client's unique circumstances. 
I have been debating about Freedom Debt Relief, they seem like very good people but my question comes from that I am worried about my Credit Score. Here goes I have about 7-8,000 in credit card debt eventhough its not that much I have been laid off and have been looking for work for the past year trying to have been using my savings to pay off my credit. I am finding myself not struggling to do this longer but am in a delima that I have to get a place in the future and will not qualify to Rent. How long does it stay on your credit do agencies like Lexington Law Firm are good option in rebuilding it faster?
Debt avalanche. The debt avalanche is a twist on the debt snowball. Instead of paying extra on your lowest debt to get that paid off ASAP, you pay extra on the loan with the highest interest rate. When that loan is paid off, pay more on the debt with the next highest rate, and so on until all debt is paid. The big benefit: You save a lot of money by getting rid of high-interest debt first. The downside is, it may take you much longer to pay off your highest-interest debt than your loan with the lowest balance. And it's harder to stay motivated if you don't see debt disappear. 
According to research, more than half of American consumers (57%) don’t have enough cash to cover an unexpected expense of $500 or more. Remedy: It’s impossible to predict unemployment, car accidents or busted plumbing, which is why every home needs an emergency fund. Experts say put 3-6 months of expenses aside for emergencies. It might take a while to get there if you’re focused on paying off debt, but again, it has to be part of your monthly budget. Set aside at least 5% of your income in an emergency fund, at least until you have three months of expenses covered.

Paying off credit card debt won’t hurt your credit scores, and often helps. As for closing accounts, it’s impossible for us to predict exactly what will happen if you close those accounts, Since they are department store cards they probably aren’t charging you an annual fee, are they? Why not just stop using them once they are paid off? You can even cut up the plastic if you don’t want to be tempted to use them again.

You see, when you consolidate your debts or work with a debt settlement company, you’ll only treat the symptoms of your money problems and never get to the root of why you have issues in the first place. You don’t need to consolidate your bills—you need to delete them. To do that, you have to change the way you view debt! Even though your choices landed you in a pile of debt, you have the power to work your way out! You just need the right plan. 


Financial education. You'll have access to a wide variety of educational resources for help getting out of debt. These include newsletters, articles and tools on our website that can help you manage credit card debt, budget your finances more effectively, learn about how to stay out of debt, and get answers to questions like "How can I improve my credit score?" and "What is debt consolidation?"


Addresses listed for internet and telephone credit counseling agencies may be outside the requested state or judicial district. In such cases, the credit counseling agency is physically located in another state or judicial district, but is approved to provide credit counseling in the requested state or judicial district. In some states and judicial districts, credit counseling may be available only by internet and telephone, and not in person.
I entered a DMP (Money Management Intl) 4 years ago with a pile of debt and am now a month away from being debt free. I will say the service wasn’t exactly what I expected going into it – the DMP was very hands off and didn’t provide much in the way of real conselling. They don’t even explain the process very well, so it’s worth doing a little research on your own. That said, I’m not sure I could have tackled my debt without the reduced interest rates and the one-payment structure.
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. 

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.
A debt management plan (or DMP) is one way MMI can help you resolve your credit problems and repay your debt. A debt management plan is recommended for those individuals who need more than advice and could benefit from a structured repayment plan. Through a debt management plan, you are able to make one convenient monthly deposit to MMI which is then disbursed to each of your creditors.
No. All eligible unsecured debt must be accounted for in a debt management plan, even those bills that you typically have no problem making payments on. The credit counseling agency in charge of your debt payment plan will want a full accounting of income and expenses in order to arrive at an accurate amount available to make the monthly DMP payments so be prepared to include all eligible debts.
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