Gerri. I screwed up bad. I joined up with a friend who said he can get a company going. I bought $13,000 worth of merchandice and loaned him through time about $15,000 in cash Through cash advanced from my cards. He bailed. I got about $4000 in tools back but I had previous balances(that were controlled) I ended up getting a consolidated loan. Big mistake. Total I owe $13,000($320 month)on a card and $34,000($806 month) to consolidated loan. Now I’m thinking of debt relief($906 per month){total of $34,000which is lower than what I owe on the two debts} My score is 750 est and I don’t want to hurt that. I have house payment of $540 (pay off est $74,000) Car at $450 (pay off approx $15,000)one at $300(pay off approx $13,000) and one at $325 (pay off $23,000{bran new}) and basic stuff. Food, power bill, cable, insurance & cell phones that total up to approx $1300 month. My wife takes care of all that but the mistake of the two debts is all mine. I give her 80% of the pay and I take 20%. I average take home about $2500 to $3000 est every two weeks. I think I need a counselor. What should I do? I’m freaking cause I started the debt relief program($34,000 at $906 for 38 months which is lower than what I owe total on the two debts I’m discussing). but haven’t signed the final paper just yet. I feel I make enough to pay off everything in no time but my wife says we are living paycheck to paycheck. All my wife’s cards will be paid off probably in March. I’m like way confused

How Is Debt Negotiation Different From Bankruptcy? Bankruptcy is an option that is generally treated as a last resort. It will remain on your credit report for 10 years & you can be denied employment, state licenses, insurance, as well as tenancy of an apartment. Most importantly, you can be denied virtually any type of credit with a bankruptcy on your report for several years. In addition, since the bankruptcy laws have changed recently, it is even more difficult to qualify for Chapter 7, the method of liquidating assets to eliminate your debt. You will not be allowed to discharge alimony, child support, taxes, student loans, judgments, or any loan on the bankruptcy petition. Under Chapter 13 bankruptcy, your debt payments are simply restructured meaning you will still have to pay a percentage of your debts while you suffer the consequences of bankruptcy. Debt negotiation is an alternative to bankruptcy.

The interest rate of your loans has no effect on your credit. You will pay off the loans quicker if you concentrate on the high-interest rate loans and as a result your credit utilization ratio will go down which will improve your credit, but you could achieve a lower credit utilization by paying off the loans with the lower interest rate as well so your statement is misleading.
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.
If you’re interested in a debt management program, you’ll first consult a Clearpoint certified credit counselor in a free, basic credit counseling session, which is offered online, via phone, or in person. Your counselor will review your total financial situation and discuss your credit report, income, and expenses. You and your counselor will take inventory of your outstanding debts and creditors, and your counselor will explain how a DMP may work for your specific situation, including how your interest rates and monthly payments may change on the program.
A chance to start over. The anxiety of dealing with debt everyday crushes people’s spirits. Choosing the debt-relief option that gives you a way out of debt is a life-changing experience. Nothing feels better than second chance, an opportunity to right the wrongs and prove you’ve learned from experience. Bankruptcy, despite its reputation, will do that. A successful Chapter 7 or Chapter 13 bankruptcy breathes life back into consumers. It brings hope that the lessons you’ve learned about finances can take the stress out of your life.
There isn’t an easy and quick way to get out of debt. You have to discipline yourself daily and to be consistently financially responsible for months or even years. If you need help with paying off your different debts, you can go to a debt consolidation company, and try to apply for a debt consolidation loan. You have to know, however, that you’ll have to spend a bit of money on fees.

Finally, if you do want to proceed with a debt settlement program I would always advise using somebody local or a debt settlement attorney who can help you in a similar fashion as National Debt Relief and likely save you on fees associated with the settling of your debts without the worry of thinking about whether you are being taken advantage of as attorneys are regulated by their states bar association and are subject to rules of professional conduct in order to maintain their bar license.  Additionally a local attorney can take creditor calls and assist with defending a debt collection lawsuit and settling the case prior to any judgment as part of services offered.
Once a credit counselor has reviewed your situation and you both agree that a debt management plan is the next best step, the counselor will negotiate with your creditors to see if they'll agree to reduce interest rates or monthly payments, waive fees or reduce the amount you owe. When your credit counselor reaches an agreement with all creditors, you'll begin making monthly deposits with the credit counseling organization, and it will use the money to pay your unsecured debts.
A recent credit counseling study has produced significant research findings for the debt relief industry, showing that it is effective in helping people pay off more debt and faster. Researchers at Ohio State University compared two groups of financially distressed people with similar characteristics. The first group received credit counseling and the second did not. Those who received the service reduced their credit card debt by nearly $6,000 within 18 months of counseling. Those who had not received counseling, reduced their debt by only $3,600. Additionally, counseled participants’ available credit ratio was 19% higher than non-counseled available credit. Download the NFCC OSU Credit Counseling Statistics Final Report – 2016.

You’re ready to begin your debt snowball once you’ve saved your $1,000 starter emergency fund. That’s what we call Baby Step 1. An emergency fund covers those life events you can't plan for. Think busted hot water heater, dental emergency or flat tire. You get the drift. An emergency fund protects you from having to go further into debt to pay for an unexpected expense.
The most important first step to getting out of debt is to create a budget and take a hard look at your spending. This can be eye-opening for people who have never tracked their expenses. You have to get serious about reducing or eliminating certain unnecessary expenses. Be prepared to make sacrifices. This might mean a zero-dollar budget for things like date nights and new gadgets. Steer clear of temptations as much as possible, which might involve avoiding the mall or unsubscribing to emails from your favorite online retailer.
Tip: Before you do business with any debt settlement company, contact your state Attorney General and local consumer protection agency . They can tell you if any consumer complaints are on file about the firm you're considering doing business with. Some states require debt settlement companies to be licensed. You can check with your state regulator or ask your state Attorney General if the company is required to be licensed to work in your state and, if so, whether it is. You can also view the Federal Trade Commission's page on "Coping with Debt " for more information.
“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.”
DMP: The fact that you’re participating in a DMP isn’t calculated into your credit score, although it will be noted on your credit report. That said, other consequences of the DMP will have an effect. For instance, closing your accounts will affect the amount of credit you have available and could impact your credit history, both of which figure into the credit score algorithm. To learn more about how credit scores are calculated, visit Learn How Debt Affects Your Credit Score.
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.
Watch out for common red flags. While good credit counseling agencies are transparent about their fees and services, unscrupulous ones can be evasive and pushy. Red flags include demands for payment before services start, failure to provide a contract, insisting on access to your bank account and promises of debt repair that sound too good to be true.
While it seems to make sense to devote every dollar possible to eliminating debt today, in the long run, it’s a costly mistake. Remedy: Contribute at least 5%-10% of your income to retirement savings as soon as you begin working and don’t let eliminating debt cut into that. Time is the most powerful tool in retirement savings. The earlier you start contributing to a 401(k) or other retirement fund, the better off you’ll be at retirement. Find other places in your budget to pay down credit card accounts.
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.
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.
Absolutely. InCharge is proud to offer an online credit counseling option where you enter your information and receive a personalized debt relief solution without ever having to speak to a person. If a debt management program is recommended, you can add or delete credit accounts, choose a payment due date and set-up automated payments, all without having to call in to a counselor.
It sounds like you have done what you can to protect yourself (credit freeze, law enforcement etc.) I am not sure what your bank will do but I can’t imagine they will pursue you for a crime committed against you. Have you changed the bank account you deposit your Social Security check into? If not, talk with your bank. It would seem to be a reasonable precaution.

Seek the help of a psychologist or another mental health expert if your concerns about debt are negatively impacting your day-to-day life. A licensed health expert can help you confront your anxieties head on and offer strategies for dealing with them effectively. Also, reach out to your personal network and let those close to you know that you could use their support. It helps to know that you’re not in it alone.
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 top benefit is a reduction in both monthly payment and interest rates. There is the convenience of making only one payment for all your debts. You also receive valuable education materials, including financial tips and reminders for payments due. InCharge clients receive a monthly statement that details payments made to each creditor and a progress reports on how much of the debt has been paid.

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