The Federal Reserve says that the average household debt is up to $132,529 (including mortgages) a jump of 11% in the past decade. Credit card debt and auto loans are climbing over the $1 trillion mark. Student-loan debt has hit a staggering $1.3 trillion with 44.7 million borrowers, who owe an average of $37,172. That figure alone is up 186% in the past decade!
Debt negotiation: If you choose this option, National Debt Relief will negotiate with your lenders in order to either lessen your debt or make it easier for you to make payments without incurring a lot of fees and interest. Since National Debt Relief has been around so long, they have a good track record with various lenders and have the relationships built for good negotiations.
Bankruptcy: While National Debt Relief can’t actually file bankruptcy for you, it can help you through the steps you will need to take in order to file for bankruptcy. The first step is a detailed explanation of what bankruptcy is and if you should even consider filing for it. This information is all offered free on the National Debt Relief website before you even sign up. The next step is walking you through the procedure of filing for bankruptcy, which National Debt Relief has a lot of experience doing.
If you're unable to pay your creditors, filing for bankruptcy can help you get a fresh start by liquidating your assets to pay off your debts or create a payment plan. But you should first consider other debt management options. Bankruptcy information stays on a credit report for 10 years and can make it difficult to get credit, buy a home, get life insurance, or sometimes get a job.
Afterward, a National Debt Relief specialist will contact you to discuss options and require that you provide proof of your debt balance, income, assets and basic necessity expenses. Any proof that you are struggling with financial hardship needs to be provided during the initial financial review to assess whether a debt settlement program is right for you.

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.
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.
Debt management companies are springing up everywhere. These companies help "manage" your debt by taking one monthly payment from you and distributing the money among your creditors, with whom they've often worked out lower payments and lower interest. This is not a loan as with debt consolidation. Sometimes people get the two confused. However, because Americans are up to their eyeballs in debt, the debt management business has become one of the fastest-growing industries today.

I was in touch with National debt relief from past 2 years and trying to decide if I want to go this path or not by talking to few agents . Recently I had bad experience with few agents that I talked with rude attitude thnking that I am not a serious client or wasting the time by not enrolled into their programs. I think as a customer you have a right of thinking and asking or talking to few agents or looking for other options also . One of the agent Richi S. was very rude and offensive in talking to me and said I am totally a waste of time and not serious before even getting into the details of my current situation. Yes of course I had submitted the request few times thinking of enroll but did not take the decision . They cannot force or assume that every one who ask the adivse does not necessary have to enroll l or cannot submit the request again because they are not serious!. Very bad and rude customer skills. please train them to be kind and professional towards clients with their talking.
Also, there are many not for profit credit counseling organizations who offer services at local offices, online, and on the phone. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Local financial institutions and consumer protection agencies may also be good sources of information and referrals.
It might be painful to learn the truth but you have to bite the bullet. Then you’ll see that it’s not hard to end this bad habit. In fact, you can get the credit card companies to help you. Just look at the back of your credit cards for their number, call them, and ask them for the amount of debt you owe, the APR, and the monthly minimum payment on the card.
Find information on credit counseling agencies in Texas near you. Numerous non-profit organizations operate in the state and can provide mortgage, debt, and various other forms of assistance to consumers and homeowners. The agencies deal with issues ranging from credit repair to debt management plans, bankruptcy filing, and other financial matters in Texas, and most services are free of charge. More information is below, including how to get help by county.
Everyone I've talked to has been professional and courteous. They have truly helped to alleviate some of the stress of feeling like you are drowning with nowhere to turn. There didn't seem to be any daylight at the end of the debt tunnel until I spoke with the folks at National Debt Relief. Everyone is very helpful and the explanations of the process have been very thorough. I feel confident that with their assistance this program can work and I can get out of debt within a reasonable amount of time and save money in the process.
At this point, you will need to continue following the advice of the credit counseling agency you hired to help and remember the benefits of being debt-free. Life is a lot more difficult when you’re juggling credit card bills and other payments each month. If you want to avoid winding up back in debt, it’s crucial to remember how far you’ve come and how wonderful freedom feels.
Under the provisions of the Servicemembers Civil Relief Act (SCRA), you may qualify for a reduced interest rate on mortgage payments or credit card debt, protection from eviction, or a delay of all civil court actions, such as bankruptcy, foreclosure, or divorce proceedings. To find out if you qualify, contact your local Armed Forces Legal Assistance office.
National Debt Relief uses debt settlement as a way to lower its clients’ debt. Settlement lets the company’s debt lawyers negotiate lower outstanding balances with creditors. Settlements can also lead to lower interest rates and waived fees. National Debt Relief, however, acknowledges that some debtors will not negotiate in good faith, which makes it difficult or impossible for settlements to work.
Help from debt collectors is available. Find how to get help from debt collectors and learn how to stop collection calls. Families being impacted by this can also receive other assistance, whether free legal aid or counseling. Many government laws and regulations can also help protect you from aggressive collection tactics. They are intended to asisst the everyday consumer. Find how to get help from debt collectors.
Under the provisions of the Servicemembers Civil Relief Act (SCRA), you may qualify for a reduced interest rate on mortgage payments or credit card debt, protection from eviction, or a delay of all civil court actions, such as bankruptcy, foreclosure, or divorce proceedings. To find out if you qualify, contact your local Armed Forces Legal Assistance office.
DMPs for consumers are often negotiated by a credit counseling agency on behalf of the debtor.[1] Credit counseling agencies often address the debt by working with the debtor to set a budget based on their regular income and expenditures that will then include one regular bill payment that is allocated across the creditor(s). Agencies will negotiate on behalf of the debtor to lower payments and interest rates with creditors. Some of the agencies are non-profits that charge no or non-fee rates, while others can be for-profit and include high fees.[1] The effect on the debtor's overall credit score will vary.[3] In the United Kingdom, as well as DMPs, residents can also apply for an Individual voluntary arrangement (IVAs), which can give the debtor a discount on their debt.[4]
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.
“The first thing a person needs to do is take a close look at how they got into debt in the first place,” advised Carolyn McClanahan, M.D., CFP, who began her career as a physician and is now founder of a financial planning group called Life Planning Partners LLC, based in Jacksonville, Fla. “They should identify what triggered the situation or any bad habits that might have led to their debt, so that they don’t repeat those things going forward. Then, they need to make an actionable plan to figure out how to get out of debt.”
To get out of debt quickly, you have to look closely at your assets. Real estate assets that are expensive to maintain, life insurance policies that are no longer necessary but have expensive premiums and investments with returns lower than the interest rate on debt should all be converted into cash right away. Be aware of the tax implications of liquidating assets. Typically, proceeds from a life settlement and money from the sale of a primary home aren’t taxable. Check with a certified public accountant before making any big moves.
It’s also worth noting that working with debt counselors doesn’t negatively impact your ability to qualify for new financing. Even if you enroll in a debt management program, you can still get approved for loans, such as a mortgage or an auto loan. You can’t open new credit accounts during enrollment. However, you can get approved for major financing to purchase a home or car or to fund a higher education. This way, you don’t have to put your life on hold while you pay off your credit card debt.

Many people fail to recognize that there are many instances where you can negotiate and in turn, lower your debt. Take medical bills, for example. “It can really help to negotiate with the medical provider,” said McClanahan. “If you’re willing to pay them real money over time, you can end up paying pennies on the dollar of what you own,” she said. In addition to negotiating, McClanahan suggested asking hospitals or health centers whether they have any financial assistance programs that you might qualify for.
When you take a balance transfer, you'll move the balance on an existing credit card that's at a high interest rate over to the card with the 0% promotional rate. From that time on, you'll pay no interest for 12 to 18 months, or whatever the time limit on the promotional rate is. Every dollar you pay toward your debt goes to reducing the principal. You'll repay debt much more quickly when you have no interest to pay. 
Home equity loans involve borrowing a fixed amount of money based on the equity in your home. As a simplified example, if your home is worth $100,000 and you owe $50,000 on it, you might be able to borrow between $30,000 and $40,000 in equity. Most home equity loan lenders won't allow you to borrow so much that you owe more than 80% to 90% of the value of the home.

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.[4] Two professional associations represent Credit counselors: the National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies.[6]

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.

Some of them include debt consolidation, foreclosure and mortgage delinquency counseling, and budgeting. Review alternatives to a foreclosure that may be available to you such as mortgage modification. A counselor can sometimes work directly with your creditor or bank to enter into installment plans with them, or they help facilitate a solution with all impacted parties.

Our credit was pretty good, around 700-730 but we were in a never ending circle or debt, with high interest rates we never saw an end in sight. We’ve been making payment now for about 3 months (it takes awhile for your creditors to accept a negotiated rate/payment from CareOne) and now we feel so much more comfortable. We now have thousands of dollars in savings, lots of money in our checking, and most importantly we are finally putting a dent in our debt because it dropped our interest rates so much- some to 2%.

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I have debt which if I follow my plan should be paid off in two years (except for one huge student loan and my mortgage). I contribute to my work 401k plan. That money would be helpful to put towards my debt however I am also 62 and would like to retire in 2023. Am I doing the right thing in continuing with the 401k, or because I only have 25k in the 401k, should I stop and use the money towards the debt?
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.
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.

Eliminate and consolidate medical debt to deal with health care costs that are continuing to escalate and that are really out of control. There are ways to consolidate medical debt using assistance programs that are offered by directly hospitals, medical providers, doctors and counselors. These plans are becoming more common in today’s challenging economy and when also considering the aging population. A health care provider will want to find some type of solution for the patient, as in some cases if they do not work with them it can lead to bad public relations. Learn more on how to eliminate medical debt.
I have been with NDR almost a full year and am happy with my results. They have settled 3 of my 5 accounts so far and I have received letters from these companies saying what the settlement was for. Also about the credit situation, they tell you when you sign up that it is a negative impact on your credit, you would have to be stupid to think your credit is going to be fine when you're settling with one of your creditors for half the price they lent you. NDR in my books on a scale of 1-10 is a perfect 10, I'm very satisfied with my results and glad I've found someone that is willing to help people that are sinking in debt
Yep, you read that right. And yes, we even mean stop contributing to your 401(k). Right now, you want all your income to go toward getting out of debt. Once you’re debt-free and have saved three to six months of expenses in an emergency fund, then you can resume your contributions. By then you’ll be on Baby Step 4 and can start putting 15% of your income toward retirement.
The potential to be sued for debts due to non payment is what causes consumers to reach out to a debt settlement attorney to learn further about their options. In my experience consumers typically accuse National Debt Relief of not settling their debts in time to avoid the lawsuit or not informing them that they could be sued on the debts when it all could have been avoided in the first place had the consumer talked to a debt relief attorney from the beginning of their financial problems.

You must be able to demonstrate financial hardship, so that the company can negotiate with your creditors and show you are eligible for debt relief. Some examples of financial hardships, according to the company’s website, are a recent job loss, a separation or divorce which has led to a reduction in income, death of a spouse, unexpected medical bills, student loans or IRS taxes.

Choose your lender. With debt consolidation, you can choose the lender you work with. And you have plenty of options to choose from. You can compare lenders here at our debt consolidation loan marketplace. You may get to explore loan offers after inputting some basic information. You can also use our widget below and compare offers from up to five different lenders on LendingTree.


If you are really unable to repay your debts because you have no source of income at the moment or if there is just no realistic way that you could repay them in two to three years the final option is to file for bankruptcy. However, this would tarnish your credit history very seriously. You will be unable to get new credit for at least two or three years after your bankruptcy and when you do it will come with a very high interest rate. You will be required to pay more for your auto insurance and may have a problem renting a house or apartment. The bankruptcy will stay in your credit reports for 10 years and in your personal file for the rest of your life. Many employers now routinely check the files of prospective employees and some may decide to not hire you if they see a bankruptcy in your history.
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.

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.
Understand the basics of good credit counseling. Many nonprofit credit counseling agencies offer both free and paid services, Kalkowski says. They may offer complimentary consultations, financial literacy workshops or even one-on-one budgeting sessions free of charge. However, if you sign up for a debt management plan, expect to pay for the service. Debt management plans through nonprofits often have a startup fee of $30 to $40 and monthly fees of $20 to $40.

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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