Talk with your credit card company, even if you have been turned down before. Rather than pay a company to talk to your creditor on your behalf, remember that you can do it yourself for free. You can find the telephone number on your card or your statement. Be persistent and polite. Keep good records of your debts, so that when you reach the credit card company, you can explain your situation. Your goal is to work out a modified payment plan that reduces your payments to a level you can manage.
Rachel Kampersal said debt management plans require you to change your habits dramatically since you will have to stop using credit. “Per requirements from creditors, any card that is entered into a debt management plan will be closed, meaning you can no longer make charges to these cards. While difficult, it’s important to stop incurring new debt.”

Some companies make use of unethical practices in order to quickly boost a person's credit score. For instance, some companies will instruct people to dispute all debt on their credit report, even accounts they know are legitimate. Since debts are removed while credit bureaus investigate, this can provide a temporary boost in a person's credit score but no long-term benefit. Some state laws, such as the Michigan Credit Services Protection Act, make this practice illegal as well.


InCharge Debt Solutions clients have access to a Debt Management App that makes managing your accounts, checking your balances, and rescheduling payments easy and convenient. The Debt Management App also allows you to check your up-to-the-minute “debt free” percentage: “You Are 55 percent Debt Free.” Research shows that tracking a goal makes you more likely to stay motivated and accomplish it. With the Debt Management App, InCharge strives to be the “Fitbit” of the personal finance world.
Always keep in mind when dealing with services like debt relief that many customer view it as a magic pill to solve all their debt problems and make them financially stable, which is not the case. There are no guarantees when it comes to debt relief. These companies try to work with customers to lower their debt burden, but they aren’t going to work miracles.

Finding debt relief means that you identify a solution that minimizes the burden of debt repayment. The goal is to reduce or eliminate interest charges and fees so you can pay off your debt faster. In many cases, you can pay less each month and still get out of debt faster than with traditional payments. Essentially, you find a better way to pay back what you owe that works for your finances.
The benefit of going for this type of debt relief option is that your monthly payment will most likely be much lower than the sum of the payments you are currently making. You may also have any penalty charges waived as well as any fees. Most of all, you will no longer be harassed by your creditors as they will be handling everything through the debt management agency.

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.
Debt management plans, or DMPs, will lower your interest rates and therefore monthly payments. These so called DMPs are available directly from a credit card issuer, lawyer, debt management company or a non-profit credit counseling agency. The company that you enter into a plan with will negotiate on your behalf with your creditors. This can help you get lower interest rates, waive fees, provide you additional time, and will reduce the total amount of your monthly payments. More on debt management plans.
One factor I have not seen mentioned here is what I learned when entering the field of sales. A job is just that; a means to an end. A job produces a predictable income stream, which is why we were taught that j.o.b. = Just Over Broke, or, where most people are comfortable remaining for the majority of their working lives, whether out of habit, fear, or ignorance of what opportunitieseee are available to them.
credit counseling agency for a consultation doesn’t impact your credit at all since the fact that you’ve sought help is not reported to the credit reporting agency. If you enroll you in a Debt Management Plan, where you make one monthly payment to the counseling agency and it disburses payments to your creditors, however, it can affect your credit in several ways.

My daughter has major college loan debt. We have helped pay a couple of loans,but cannot pay them all. She is working three jobs,trying to get her Spcial Ed teaching degree,and is living back home with us. She will be 27 in November and feels like she will never get out of this vicious cycle.She has negotiated some of her loan’s interest rates down,but is now considering bankruptcy.is it true that you can’t file bankruptcy on student loans? This is a nightmare for so many young adults. I think that it is a major part of the economic woes in this country.

Many times, a credit counselor can offer insights into your financial situation that you may not see on your own. They may see obvious ways you can cut your spending that you may have overlooked, for example. Their extensive knowledge of debt relief options also makes them ideal mentors for consumers who need professional help when it comes to assessing their debts and figuring out a plan that will work.
Credit counseling organizations are usually non-profit organizations. Typically, their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors discuss your financial situation with you and help you develop a personalized plan to solve your money problems.  Here are some examples of what credit counselors might do: 
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.
Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in consumer credit, money and debt management, and budgeting. They discuss your entire financial situation with you, and help you develop a personalized plan to deal with your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.

In most cases, medical debt has no interest rate attached to it so there really is no gain by including it in a debt consolidation program. Remember the key elements of debt consolidation are: a) a reduced interest rate; and b) lower monthly payment. The one advantage to medical debt consolidation is that it becomes part of your single, monthly payment and could help you pay off the debt faster.


The services provided by credit counseling services are nothing consumers can't do by themselves. "You could do it, but it's an involved process," says Kyle Winkfield, partner with financial firm O'Dell, Winkfield, Roseman and Shipp in the District of Columbia. The benefit of using an agency is that they have experience in negotiating debt payments and disputing incorrect information on credit reports. Paying an expert to do these tasks not only saves a person time, but can minimize the stress of having to navigate unfamiliar territory. "If you find a good one, they are worth more than they charge," Winkfield says.
Find out how your personal information will be protected. When you enter a debt management program, you have to share some of your most sensitive financial information with the counseling agency. You'd better make sure they won't sell it to others or disclose the information to anyone except the creditors you've agreed to include in the plan. Get a written privacy policy from them, and ask what safeguards they have in place to protect your information.
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.
Consumer Credit Counseling Service of Greater Dallas, Inc. - Consult with a specialist for free/low cost, and most importantly, confidential advice. They will help you get out of debt, find resources to pay bills, and offer budgeting advice as well which can lead to long term self-sufficiency. They are also a federal government HUD certified housing agency.

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.
×