Note: I can’t take the space here to list a million business ideas, but I have always found inspiration in the Inc. 5000, a list of the fastest-growing companies in America. My first college internship was with Inc.—my job was to interview the CEOs of these companies to ask about the secrets of their success. It was one of the best experiences of my life. I still think of that list as “5000 ways to make money.”
Ok, so what if I DID max out all my credit cards and couldn’t get another loan? I’d have piles of debt, with little or nothing to show for all my hard work, and payments like crazy. In short, I’d be desperate, but…I’d find another way to solve the immediate problem facing me. So why not just find another way NOW and save myself a world of hurt and a pile of debt…
Hi, I’m 28 and made a lot of bad decisions with credit cards when I was younger. I’ve been able to make at least the minimum payment on time until the 4 months or so, I’ve been late on a few bills trying to adjust to a new job and pay periods. I still have about $16k in debt, and am starting to really struggle to get by each month. Last year my score was around a 740, and I’d like to salvage as much as possible, but the payments are just getting too high now that they have raises my interest rates. What is my best option to resolve this without destroying my credit score?

If you want to get out of debt fast, you have to stop using debt to fund your lifestyle. This means no more financing furniture, no more signing up for credit cards, no more test driving brand new cars that you don’t have the cash to pay for. This will help you focus solely on the debt that you currently do have so that you can develop a game plan to pay it off quickly.

I am 27 and looking to buy a house but I am 50 points shy of getting a good loan and my debt to income ratio is over 50%. I’ve been googling a bunch of information but can’t tell who is reliable how being with a credit counseling would help or even a legal services that are being advertise to pay off short term debts. I just want to know my best opitions to help repair my credit score (as quickly as I can) in addition to it not affecting my taxes.
A debt settlement plan in which you repay less than you owe hurts your credit. If your score is around 680 at the time you settle your debt, you could lose between 45 and 65 points. If your score was around 780, you'd lose between 140 and 160 points. However, it won't hurt your score as much as bankruptcy. For a 680 score, bankruptcy could take off 130 to 150 points, and for a 780 score, bankruptcy would cause a drop between 220 and 240 points. While the drop to your score is dramatic and it could take several years to recover, debt settlement could provide much-needed relief if you're struggling to pay bills. 

With it being the third month and nothing had been settled yet I did respond to one of my creditors explaining to them the situation. Disturbing thing is that when I asked her why they hadn’t contacted clear one advantage I was told that they had never received anything from them that’s why they were reaching out to me. At that time I was able to settle the account with my creditor got the direct contact number for the woman that I spoke with and immediately contacted Clear One Advantage.


They also have a wider range of customer-friendly features than the average debt management company. These include a clear, intuitively designed website, online chat, Saturday credit counseling hours, and dozens of branches nationwide for those who want to do business face to face. Fees range from $0 to $50 for setup, and $0 to $75 monthly, depending on your state.
Take advantage of free credit counseling. The best kept secret in the debt management industry is that you can do most of the things debt management agencies do and avoid paying their fees. Credit counseling is a mandatory prerequisite to enrolling in a DMP. Credit.org offers credit counseling at no charge. Many debtors find that credit counseling alone can help set them on the path to being debt free.[2]
On the opposite end of the spectrum, American Consumer Credit Counseling is impressively detailed with their FAQs and discussion of debt management. They offer a debt management calculator that allows potential clients to input their creditors and outstanding balances to get an idea of the savings they may realize. Established in 1991, the company does business in all 50 states and is accredited by the BBB, AICCCA, and ISO. Their fees are also low ($39 to enroll, and from $5 to $35 monthly). However, they will only deal with unsecured debt, and the site pushes the debt management plan a bit more heavily than other competitors.

Bad handling of a credit card occurs when a person has more than one in his power and use each one of them to their credit limits. This can generate a total expense that can exceed your monthly income in two or more times. It’s best to establish a limit like a margin of guarantee of at least 30 percent lower than the credit limit. For example, if your credit limit is $3,000 per month, then with a security capacity of 30 percent, you can define your own spending limit as $2,100.
It’s important to remember that all debt consolidation companies receive negative reviews from clients who don’t feel that they got the results they wanted. You will always see a mixture of negative and positive reviews, so try to take an even-handed approach. According to most people who have left National Debt Relief reviews, National Debt Relief can help you find medical debt relief, business debt consolidation and other strategies that quickly repair your financial circumstances. Some people are beyond the abilities of National Debt Relief, but chances are you can get the assistance you need.

I’m about 70k in debt (which includes a car loan and student loans). I was very naive in thinking that earning a Bachelor’s degree would award me with a high paying job and I would be able to take care of this mountain of debt no problem. Of course, that’s not reality, and I make 25k a year. I’ve been working at this job for about a year and a half now, and I have FINALLY found a better paying job after a year of active searching. Although it’s not much, I’ll be moving up to 29k a year. While I pay off my 10k car loan at 250 a month, I’ve been completely avoiding my student loan debt, I don’t even look at it. Right now my loans are in deferment but I owe my first payment in August. I’m really starting to panick. I appreciated your article and found a lot of useful advice in it. I think my first step to paying off my loans will be to work as hard as possible at my new job so maybe after another year or so I can increase my salary more substantially…. Other than that I’m really at a loss for what to do. Any specific advice regarding such a high amount of student loans? (That honestly, I’m almost too embarassed to admit to in this post)

If you choose laddering, put as much money as you can each month toward the card with the highest interest rate, while still paying the minimums on the other cards. Once that debt is paid off, move on to the card with the second highest rate and so on. But this is very important: Do not close the account once the balance is paid off. That will damage your credit. Just let the account sit at a balance of $0.
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.

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?"
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.
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]

Should I Keep Paying My Credit Card Bills? Due to your legitimate financial hardship, you are able to participate in this savings program in order to help pay your debts in the future. We are not here to advise you not to pay your debts now, however if you continue to make payments to your creditors, there may be less debt or possibly none left at all for us to settle. If you are able to save money in this program & make payments to your creditors at the same time, then you probably don’t actually have a legitimate financial hardship.
Don’t be afraid to have many budget categories. It will help you have a greater understanding of where things are going. Some regular expenses include internet, cell phone, household goods, medical costs, pets, haircuts, car repair, and home repair. Not every item will have an expense every month, but by setting some money aside for those irregular expenses, you’ll be ready when they hit.
I started today while reading this article by putting 5 dollars into my savings account. I feel like I’m drowning in debt and living from emergency to emergency. I know they key for me to getting out is establishing savings…and I’ve procrastinated. No more! Today I started, next pay check I’ll put in 50, next 100, maybe I’ll get to 200 in a few months. I want to see $2000 in there so I can afford things like car maintenance and medical co-pays!
In the United States, credit counseling agencies are loosely regulated by the Federal Trade Commission (FTC), the nation's consumer protection agency, which can sue companies that have deceived consumers about the cost, nature, or benefits of their services.[1] Different states may regulate DMPs individually and attorneys general are empowered to protect state citizens from fraud.[5]
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.
Negotiate credit card debt as well as outstanding loans - While it is possible to contact a credit card card company and negotiate yourself, unfortunately getting the best deal you want or that you may need won't necessarily be easy, if it can be done at all. If you do try to negotiate yourself rather than using a professional counselor, find a do it yourself approach to negotiate and get out of debt.

Our experience with Clearpoint Credit Counseling is remarkable as they have helped us understand how to remove that overwhelming and disastrous financial burden from our lives. Our Clearpoint counselor is always welcoming, empathetic, professional and experienced and he has allowed us to live our lives as we had dreamed—free from the nightmare of the intimidating phone calls, the threatening letters and the guilt we felt.


Military credit and debt counseling is offered to active service members as part of the Military OneSource Program. The federal government created this program in partnership with non-profits such as the National Foundation for Credit Counseling. Any member of the military, whether active duty or a reserve, may qualify for free advice and counseling. Clients can have a number of financial issues addressed, including excessive credit card or medical debts, sign up for budgeting workshops, credit repair and more. Read Military OneSource Program.
The great thing about Clearpoint is that their debt management program allowed me to consolidate the payments of 9 different credit cards into one single payment… They were the ones that contacted all the credit card companies and got the lowest APR possible. And they were very supportive too—there was never any judgment about what had happened or anything like that. They were just there to help, completely on board with me as a part of my team.
Such a scam, they make you believe they're helping you but in reality they are ripping you off. They are charging you for something you can do on your own. There is nothing special about this company, please don't waste your time and money. Wish someone told me this before I signed up. I never write reviews but I feel so strongly about this that I had to try to stop someone else from making the same mistake and sign up with National Debt Relief.Read More

If you are looking for an alternative to a debt consolidation loan, then Tally may be an option for you (a credit score of 660 will be needed to qualify). Tally helps save consumers money and stress by managing their credit cards and paying down balances faster with a line of credit. Simply link up all of your credit cards in either the iOS or Android app and Tally will do the hard work for you.
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.
If you are looking for an alternative to a debt consolidation loan, then Tally may be an option for you (a credit score of 660 will be needed to qualify). Tally helps save consumers money and stress by managing their credit cards and paying down balances faster with a line of credit. Simply link up all of your credit cards in either the iOS or Android app and Tally will do the hard work for you.
A credit counselor also may be able to negotiate lower interest rates with your creditors and get late payment fees and other fees waived, which will help to lower your monthly payment amount. Because of the lower interest rate, more of your monthly payment will be applied to your outstanding balance, and this will help to speed along your repayment. For example, one agency reported that clients reduced their monthly interest payments by an average of $209.81, and their total monthly payments went down an average of $172.48 each month. (Cambridge Credit Counseling Transparency Report #8).
Premier Debt Help is a company that has helped thousands of customers find effective, affordable, and highly beneficial debt settlement. When you sign up for debt relief with Premier, you get knowledge, experience, and personalized debt relief help for you. We take pride in offering a program that offers rapid debt relief, allows families to pay off debt for a fraction of what they owe, and also helps educate families on their personal finances. If you feel lost, don’t wait until it’s too late. Give us a call, and let our program help you get back on your feet.
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We typically recommend fixing the rate as much as possible, unless you know that you can pay off your debt during a short time period. If you think it will take you 20 years to pay off your loan, you don’t want to bet on the next 20 years of interest rates. But, if you think you will pay it off in five years, you may want to take the bet. Some providers with variable rates will cap them, which can help temper some of the risk.
Most of the major banks and card issuers are more aggressively offering their own debt reduction and settlement plans for unpaid debt and bills. It is in their best interest to do this as well. Not only are they cutting out the middle man, but they will also receive at least some payments from the customer, rather than nothing. Find a list of credit card company settlement programs.

If you work hard the commission pays off. They are flexible with hours and everyone has great energy which I feel is most important. Full benefits the whole and PTO. I enjoy going to work and thats an amazing feeling. I want to be here as long as possible. You are your book of business here, in addition no micromanaging is a huge plus for me. I am doing really well so far and look to keep crushing it.
Next, your credit counselor will compile your data and ask you to commit to a debt management plan if they believe it’s the best option. If you choose to move forward, you will begin making a single monthly payment to the credit counseling agency who will disburse the funds on your behalf. Your credit counselor may also suggest alternatives to debt management plans if they believe a better option is available.
Bankruptcy lets you resolve your debt under protection from a federal court. Chapter 7 bankruptcy erases most debts in three to six months and wipes the slate clean, and you may get to keep certain assets. It’ll stop calls from collectors and prevent lawsuits against you. Like debt settlement, your credit will suffer, but research shows credit scores rebound quickly.
A process of negotiation will occur between your debt consolidation agency and your lenders. Many reputable debt agencies will have considerable negotiating power with your lenders and will be able to help you in both the short and long term. There is no guarantee, however, that the negotiation will be successful. Lenders do not have to accept reduced repayments or altered terms.

If you choose laddering, put as much money as you can each month toward the card with the highest interest rate, while still paying the minimums on the other cards. Once that debt is paid off, move on to the card with the second highest rate and so on. But this is very important: Do not close the account once the balance is paid off. That will damage your credit. Just let the account sit at a balance of $0.
Over time, your small balances should disappear one by one, freeing up more dollars to throw at your larger debts and loans. This “snowball effect” allows you to pay down smaller balances first — logging a few “wins” for the psychological effect — while letting you save the largest loans for last. Ultimately, the goal is snowballing all of your extra dollars toward your debts until they’re demolished — and you’re finally debt-free.
They make you think they are helping and word it as such. its only after I had “qualified for a loan” with another company to pay off my debt that I was informed of the fees and debts still in collection and no settlement was ever made. I have been paying for over a year and half of each payment went to fees for the “services” they provide.All these services they offer you can do yourself with just 30 minutes of your own time.
If you're unsure of all the accounts you may have open, especially those that might be in collections, you can check your free credit report. It will show what creditors are currently reporting to the credit bureau, including your most-recently reported balances and contact information for the accounts. (Your banks and credit card issuers will have the most up-to-date information.)

After the initial credit counseling session, if you need additional assistance to eliminate debt, your counselor will develop a customized debt management plan (DMP) for you. With the Union Plus Debt Management Plan (DMP) grant, you don't need to pay any of the DMP set-up fees. Union members who complete one year on a DMP are also eligible to apply for reimbursement of the monthly fees.
I know it’s fab to live in New York City or Los Angeles or San Francisco but if you’re going to be forever in debt and never able to retire, it’s not worth it. I know it takes money to move so you can choose from our other options; finding a cheaper place, getting a roommate, moving back in with your parents until you’ve saved enough to make a move.
My husband and I have always had separate bank account and financially we did what we wanted and never talked to the other about our spending. I feel like I make decent money and I am at my wits end because I get paid and everything goes to bills or to minimum payments. I stopped about 1.5 years ago putting more money on my credit card payments because I needed the money for bills. Today I just calculated my debt to income ratio (putting my husbands debt and income with mine) I was shocked! even after taking our mortgage out oft he equation we owe $40,972. When I was looking at just my credit cards or my car payment it didn’t seem like an awful lot of credit. But now, I feel like the wind is knocked out of me. I am not even 30 years old and I owe almost as much as I may. I feel really really scared. but I am thankful for this article but it is just what I need to motivate me! things are going to change! things NEED to change.
While your credit score may suffer if you’re falling behind on monthly payments before you get your debt management plan set up, starting your plan should provide some relief. Your credit score should increase as you begin making regular monthly payments and your debt balances drop. Experian does note that you may see some negative side effects when accounts are closed, usually due to changes with your credit utilization rate or credit mix.

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.

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.
Before discussing anything else, we’d like you to know that you have the option to fix everything yourself. Unfortunately success is not guaranteed as you have proven that you haven’t been able to manage your finances. But it could be worth a try. The good thing is that you will not be burdened with the additional costs of hiring someone to help you out. You will be able to concentrate all your funds on paying off your debts.
When it comes to student loan debt, you might consolidate federal student loans into one loan through the Department of Education's Direct Consolidation Loans. Also, or alternatively, you might take out a private loan to consolidate debts -- that's generally referred to as refinancing student loan debt. The advantages of consolidating can include lower monthly payments (if you extend your payment period) and getting out of default, while drawbacks can include less flexibility and a longer payback period -- which can mean more interest paid, overall.
In 2015 we finished our lease prematurely, we got all our deposit back and 300 bucks extra (we were in a very desirable but cheap location) and then we lived with brothers and parents. In this time I made a 4000 lump payment to my wife’s highest interest loan and increase by 50 bucks the monthly amount that goes against it. We owe just a bit over 2K on that account. She has another 11-13K in student loans.
Nice to hear from you Jai :) — we invested as well while paying off debt, so it doesn’t need to be an either-or proposition. To answer your question though, it would be way too time-consuming for me to figure out because of the variety of interest rates we had + other variables. (You may want to look at this post though if you want to see a related scenario: https://www.jackiebeck.com/why-you-should-worry-about-student-loan-interest/ ) That said, no one can see the future, but I KNOW that I no longer have all of that debt weighing me down, and I no longer have all that risk hanging out there.

Dealing with the IRS can be a very daunting task to take on alone. Fortunately, tax specialists exist to help guide you through the process of eliminating tax debt. By using DebtHelp.com, you will be able to connect with top tax experts in the US and regain control over your taxes, rather than having your taxes control you. Browse our quick guide to tax debt, our large archive of tax articles, and then use our solution finder to contact a tax specialist.


It is difficult, if not impossible to gain control of your finances unless you have a budget. People think it’s too much work … until they get $20,000 in credit card debt and wonder how in the world that happened! Remedy: Develop a realistic budget that addresses financial needs like housing, food, health care, insurance and education, but still creates room to make payments on debt. Put away the credit cards and only pay with cash. That might mean reducing (or eliminating) things like dining out, entertainment, shopping for new clothes, cars or electronics, but if you’re serious about eliminating debt, operating with a budget and paying cash is a great start.
Hi, I’m 28 and made a lot of bad decisions with credit cards when I was younger. I’ve been able to make at least the minimum payment on time until the 4 months or so, I’ve been late on a few bills trying to adjust to a new job and pay periods. I still have about $16k in debt, and am starting to really struggle to get by each month. Last year my score was around a 740, and I’d like to salvage as much as possible, but the payments are just getting too high now that they have raises my interest rates. What is my best option to resolve this without destroying my credit score?

Another survey conducted by the Harris Poll on behalf of the American Institute of Certified Public Accountants (AICPA) showed that 56% of Americans with debt admitted that it negatively impacted their lives. Twenty-eight percent of the 1,004 American adults surveyed said their debt caused stress about their everyday financial decisions, and 21% said it caused tension with their partner.
Take steps to rebuild your credit and improve your credit score, which in turn, could give you access to more credit in the future. For starters, focus on implementing a plan for paying off debt, and work to keep your balances low on credit cards. Keep in mind that improving your credit score requires small, responsible actions over time, so be patient and set long-term objectives. For more tips on how to improve your FICO score, take a look here.
Premier Debt Help is a company that has helped thousands of customers find effective, affordable, and highly beneficial debt settlement. When you sign up for debt relief with Premier, you get knowledge, experience, and personalized debt relief help for you. We take pride in offering a program that offers rapid debt relief, allows families to pay off debt for a fraction of what they owe, and also helps educate families on their personal finances. If you feel lost, don’t wait until it’s too late. Give us a call, and let our program help you get back on your feet.
In 2015 we finished our lease prematurely, we got all our deposit back and 300 bucks extra (we were in a very desirable but cheap location) and then we lived with brothers and parents. In this time I made a 4000 lump payment to my wife’s highest interest loan and increase by 50 bucks the monthly amount that goes against it. We owe just a bit over 2K on that account. She has another 11-13K in student loans.
Generally my view is if you can afford to pay your debt through a DMP, go for it. But if the payment plan they are proposing is a stretch and you’re not sure that you can keep up with those monthly payments, then consider settlement or bankruptcy. Of course, it’s impossible for me to say exactly what you should do since I don’t know your entire financial situation, but I wouldn’t rule it out for fear of the impact on your credit.
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.
Receiving automated refund checks is great, it’s like finding money on the ground. As it turns out, stores owe you money all the time, but they don’t pay if you don’t ask. That’s where Earny comes in. They automate everything. Price drop? Get cash back for the difference. Deliveries arrive later than advertised? Get cash back. Effort required? Zero, just how we like it.
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. 
Let’s be real: Kids grow out of clothes at the speed of light. It’s not worth it to go into debt for your two-year-old’s wardrobe. Check out consignment stores that sell pre-loved outfits in good condition. If you’d rather shop online, no problem. Sites like thredUP and Swap.com are great resources to get adult and children’s clothing at a fraction of the cost.
Another consideration is whether or not you can become disciplined in spending and creating financial obligations without credit counseling assistance. These counselors can coach you into staying on target with your financial goals. The reason you're considering these services is that you've fallen off a sound financial path. Utilizing the help of a credit counseling agency could help you gain financial stability.

When I expressed my concern about not paying my creditors because I had never been late on a payment ever…. I was told not to worried about it. It was going to slightly lower my credit score, you stated that not to worry it will drop off slightly but they will have everything settled within 3 to 4 months and it will go back up after they settle with my creditor and we start making the payments.

We value transparency in a debt settlement company, and National Debt Relief was one of the most forthcoming with information. When we spoke on the phone with a customer service rep, they explained the program in detail, spelling out the benefits and drawbacks and offering recommendations on alternatives. They were quick to respond to our follow-ups and provided some of their onboarding information for us to look over.
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.
Bad handling of a credit card occurs when a person has more than one in his power and use each one of them to their credit limits. This can generate a total expense that can exceed your monthly income in two or more times. It’s best to establish a limit like a margin of guarantee of at least 30 percent lower than the credit limit. For example, if your credit limit is $3,000 per month, then with a security capacity of 30 percent, you can define your own spending limit as $2,100.
As the debt relief company is negotiating with your creditors, you stop paying the bills involved (e.g. monthly credit card bills). Instead, you will be making smaller payments to a separate trust account to pool in your resources. Ultimately you will need to come up to the pre-planned amount that you agreed to with the debt relief expert handling your case.
My husband and I have always had separate bank account and financially we did what we wanted and never talked to the other about our spending. I feel like I make decent money and I am at my wits end because I get paid and everything goes to bills or to minimum payments. I stopped about 1.5 years ago putting more money on my credit card payments because I needed the money for bills. Today I just calculated my debt to income ratio (putting my husbands debt and income with mine) I was shocked! even after taking our mortgage out oft he equation we owe $40,972. When I was looking at just my credit cards or my car payment it didn’t seem like an awful lot of credit. But now, I feel like the wind is knocked out of me. I am not even 30 years old and I owe almost as much as I may. I feel really really scared. but I am thankful for this article but it is just what I need to motivate me! things are going to change! things NEED to change.
Next, your credit counselor will compile your data and ask you to commit to a debt management plan if they believe it’s the best option. If you choose to move forward, you will begin making a single monthly payment to the credit counseling agency who will disburse the funds on your behalf. Your credit counselor may also suggest alternatives to debt management plans if they believe a better option is available.
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