I graduated college in 2014, spent a year in law school before realizing it wasn’t for me. Although I have a good paying job now, I didn’t realize how expensive law school really was! My credit card debt for networking and socializing was drastically higher than it was for undergrad (where I paid it off every month). I’m now confronted with this and working to pay it down (3 months in and $2,000 down!). But I’m trying to get even more so that I can start saving for a ring! I didn’t sell any of my textbooks back in college and posted them online last week. So far I’ve earned almost $600 off of them, all of which is going towards my credit card. Additionally, my security deposit from my old apartment is coming back. I don’t have my entire emergency fund built yet (about 1.5 months worth saved), so 1/3 of it is going towards that, the other 2/3 towards my debt. I should be able to pay off another $2,000 in the second half of August/first half of September.
The top benefit is that you are on a plan that should eliminate debts in 3-to-5 years and you will stop receiving harassing calls from debt collection agencies. Convenience is another plus. You make only one payment a month for your debt payment plan as opposed to numerous payments with numerous deadlines. You receive free educational material that should help you better understand how to manage debt. Finally, you can always call a credit counselor and receive free advice should your situation change.
Gerri Detweiler focuses on helping people understand their credit and debt, and writes about those issues, as well as financial legislation, budgeting, debt recovery and savings strategies. She is also the co-author of Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights, and Reduce Stress: Real-Life Solutions for Solving Your Credit Crisis as well as host of TalkCreditRadio.com.
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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.
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.
If you are working with a credit counselor and think you’ll miss a payment, they can take proactive steps to mitigate consequences and create a plan to get you back on track. They can even negotiate to have additional late payments or late fees reduced or waived if you miss a payment. The key to making this work is being completely open and honest about your situation and speaking with your credit counselor as soon as you realize your payment will be late.
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.
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.
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.
To answer the question in a word, no. This company is one of a handful of U.S. debt-relief providers that has spearheaded innovative strategies to achieve freedom from the crippling impact of credit card debt. More to the point this company not only embraces an ethical model of debt-relief, it is helping to establish accredited standards for the rest of the industry. As far as debt-settlement goes I would rank this service well above most other debt-management type programs that essentially work in unison with credit card companies to recover the maximum debt. Credit counseling is debt-collection under the guide of debt-relief and play on consumer's anxieties and mistrust. There is no Rosetta Stone for the language of debt settlement, so until such time I recommend going with a pro service. From my own experience I can say that this company has a dedicated negotiations team who handles every aspect of the settlement process. In my initial consultation, I observed that they follow rather strict underwriting guidelines in approving candidate for their programs. Since this company doesn't collect it's service fee until after a settlement with a creditor has been secured and verified, they will not approve clients with too little/too much income or debts that may pose difficulty in settling (back taxes, mortgages, secured loans, child support owed). What I really like is that National Debt Relief fully discloses any risks attached to debt consolidation and does business with clients in complete transparency and reciprocity. They don't hide the fact that they are for-profit and benefit as your debt amount progressively decreases! There must be hundreds of companies and even more individuals who have branded debt relief programs or self-styled systems of paying of your credit card debt. Even if someone is asking you for $1 upfront for a CD or DVD, that is a clear sign of a scam. This company is not providing some exhaustible product but a committed service and it shows in its rankings/accreditations (BBB/AFCC)!!!

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.


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.
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.
They tell you to do something illegal. A certified credit counselor will never tell you to try and create a new identity to get away from your old debt. Companies that advise people to get new Social Security or Employer Identification Numbers (EINs) are scams! Credit counselors won’t even advise that you run or hide from creditors or collectors; they help you find ways to face your challenges directly.

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. 
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.

Bankruptcy can't solve your problems if you have substantial student loan debt. Student loans aren't dischargeable in bankruptcy except in extreme cases where you can show severe hardship, such as becoming unable to ever work because of total permanent disability. You also can't get rid of mortgage or car loan debt if you hope to keep the assets; you'll need to become current and eventually repay these debts in full to avoid foreclosure or repossession of the vehicle. But for unsecured debt -- which is debt not guaranteed by your assets that you simply promised to repay -- bankruptcy could provide relief. 
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.
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.
Bankruptcy and debt settlement can reduce or eliminate debts, but they severely impact your credit. However, continuing to struggle may actually be a slower, less effective way to get rid of the debt. Debt management doesn’t reduce debts, but its effect on your credit is less severe. And be aware that some types of debts typically can’t be erased or reduced: federal student loans, child support, and secured loans on cars and homes.

Call a center in Texas near you to learn about state of Texas and federal government mortgage program. There is free housing counseling offered at the same time as enrollment into debt management plans. The bottom line is that people who need help paying their bills can contact a non-profit credit counseling agency in Texas for low cost, or sometimes even free advice. The phone numbers to call to apply or enroll for assistance are listed below.
Bankruptcy stays on your credit report for a decade, it costs money, and it's emotionally difficult. It's a last resort -- but it is an option you should often turn to before liquidating retirement savings (which is protected during bankruptcy) or before struggling for years to make payments on debt that doesn't go down because all the money goes to interest. 
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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