Within five days after a debt collector first contacts you, the collector must send you a written notice that tells you the name of the creditor, how much you owe, and what action to take if you believe you do not owe the money. If you owe the money or part of it, contact the creditor to arrange for payment. If you believe you do not owe the money, contact the creditor in writing and send a copy to the collection agency informing them with a letter not to contact you.

It couldn’t hurt to talk to a credit counselor, particularly because this is affecting your health. Here’s how to find a counselor through the National Foundation for Credit Counseling. Depending on your amount of debt and income, it may or may not be the right answer for you. From your question, it’s hard to know whether you should be talking with a bankruptcy attorney, credit counselor or simply someone who can help you with a realistic budget you can stick to. But we hope a counselor, with more information about your specific situation, can offer guidance.


Participating in a credit counseling session will not be reflected on your credit report and it will not impact your credit score. However, changes in your financial behavior, especially after choosing a debt solution, may have a positive or negative impact on your score. For example, joining a debt management program and having your credit cards closed may initially lower your score. But making on-time payments you can afford over time, could raise your score. A study published by the National Foundation for Credit Counseling found that participants saw a 50 point average increase in their credit scores, 18 months after finishing the service. This gain applied to those in the bottom quartile of credit score.

Experian, one of the three major credit bureau companies in the U.S., said the impact on your score should be minimal if you and the agency making payments for you, are on-time every month. If lenders look at your full credit report while you are in a DMP, they will see that you are repaying the debt at a reduced rate and it may affect their final decision on whether to grant you a loan.
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.
Sometimes debt can just be an unintended consequence of too much holiday spending — or overspending any time of year. Many people try to get out of debt, but life slaps them in the face hard enough that they give up. But that doesn’t have to be the case. There are so many people who are getting out of debt every single day, and not only that, but they are getting out of debt in a short period of time.
However, there are impacts to your credit that don’t affect your score. While on a Debt Management Plan, a client’s credit report will have a notation that he or she is currently enrolled in a Debt Management Plan. While that notation is active, they will not be granted new credit. Plainly, this is an impact to one’s credit that should be considered. But the notation goes away when the Debt Management Plan is complete, and doesn’t have a lasting impact on one’s credit.
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.

Yes, they are different. Debt management plans are designed to pay off the entire amount you owe in 3 to 5 years. If we can lower your interest rates, the total amount you pay to your credit card company is typically less than if you paid on your own. Debt settlement typically involves requesting credit card companies to forgive a portion of your debt in exchange for a lump sum payment.
There are four other popular options that you could discuss with your creditors. The first is to have your interest rates reduced. If you have high interest debts of, say, 15% or higher and could get them reduced to maybe 12%, you would end up with much lower monthly payments, which could make it possible for you to meet your obligations. A second option worth discussing would be a timeout period of two or three months during which you would no longer be required to make any payments. This would give you time to get your finances reorganized and to save money that might allow you to catch up on your payments. A third possibility would be to have some or all of your credit card debts converted into repayment programs. You would likely be required to give up your credit cards but in turn you would have fixed payments for a fixed amount of time after which you would be completely debt-free.
The creditors don’t have the time or manpower to negotiate with every one of their customers individually. They work with credit counseling agencies like us to create a set of standard concessions that we may offer to clients when appropriate. The creditors also understand that we provide counseling and education, which makes our clients more likely to succeed in repaying their debts.
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.
The debt consolidation loan interest rate is usually set at the discretion of the lender or creditor and depends on your past payment behavior and credit score. Even if you qualify for a loan with low interest, there’s no guarantee the rate will stay low. But let’s be honest: Your interest rate isn’t the main problem. Your spending habits are the problem.
National Debt Relief is proud to be reviewed and ranked as a Top Provider by these independent review websites. National Debt Relief does not compensate these providers to apply their objective criteria to our company and rank us compared to our peers. We do, however, advertise on their websites because we are proud of our independent rankings. We have confirmed that each independent review is subject to its own criteria and not influenced by our advertising.
Addresses listed for internet and telephone credit counseling agencies may be outside the requested state or judicial district. In such cases, the credit counseling agency is physically located in another state or judicial district, but is approved to provide credit counseling in the requested state or judicial district. In some states and judicial districts, credit counseling may be available only by internet and telephone, and not in person.
Often, one of the first things that people ask when they come to us is "what are my credit card debt options?" Typically, consumers want help consolidating debt, which means taking out a new loan to pay off a number of other debts. The hope is that with a lower interest rate on a new loan they'll save money, and with just one loan payment to make, they'll stay current with their creditors more easily.
This really depends on the agency you work with and what they offer. In some cases, a company pairs credit counseling and credit repair. To do this legally, that means that they have both certified credit counselors and state-licensed credit repair attorneys on staff. In this case, they help you eliminate your debt, and then help you dispute any lingering mistakes in your report.
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.”
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.
About a week later I checked my accounts to see if there was anything else settled and I noticed what’s the balance of my account had drop tremendously. So I I clicked on the transactions and see they’ve made a small payment to my creditor plus $10 for 2 day air which it actually cost $6.70 and then I see a deduction for their fee which was more than 6 times the payment they had just made to my creditor leaving my account at less than $10 balance. I contacted clear one expressing the fact I settled the account not them and why was I being charged such a fee and why would they drain the account leaving no money to make the next payment to my creditor or to settle any of the other accounts what I was told was they had a right to pay themselves. After I did explain to them that I settled the account not them they dropped it to half of the fee for the account that I had settled but mind you this is the only 1 account after four months that have been settled. At this point all of my accounts are now going into collection,the amounts owed to my creditors have gone up considerably my credit has dropped tremendously so I start sending them the collection agencies information. In the six months they finally settled the second account. Lo and behold their fee amount because the amount due has gone up there fee has gone up the amount due is gone up because he never made contact what’s the Creditor to make a settlement. They make one $25 payment to that creditor and then pay themselves thier fee draining all the money out of my account again leaving me nothing in the account to make the next payments to both those creditors intern lost both of the settlements.

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.
Thrivent: Partnered with Thrivent Federal Credit Union, Thrivent Student Loan Resources offers variable rates starting at 4.13% APR and fixed rates starting at 3.99% APR. It is important to note that in order to qualify for refinancing through Thrivent, you must be a member of the Thrivent Federal Credit Union. If not already a member, borrowers can apply for membership during the student refinance application process.
You'd make the minimum payments on all debts, and pay as much extra as possible toward the $1,000 credit card balance. Once that was paid off, the new "minimum" payment for the card with the $3,000 balance would be $400 (the original $300 minimum plus the $100 minimum you used to make on the card you paid off). Extra cash would also go to repay that card. Finally, once both of those were paid off, you'd focus all your attention on the personal loan. The new "minimum" payment would be $650 ($300 + $250 + $100). 
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.
How it works: Settlement companies ask you to stop paying the credit card companies and instead, send regular payments to an escrow account. When the balance in that account has reached a sufficient level, the settlement company negotiates with the card company for a reduced, lump-sum payment. If the creditor agrees, money is sent from the escrow account. If there is not enough money in the account, a payment schedule is agreed upon.
Debt consolidation. When you refinance debt, you can often consolidate debt in the process, because the new loan is used to pay for multiple other debts. For example, if you had three credit cards on which you owed $3,000, $5,000, and $2,000 and you took a $10,000 balance transfer or personal loan to pay off all three, doing so has the effect of consolidating your debt. 

I have my creditors calling me 30 times a day threatening me. And every single one of them told me that it never heard from Clear one advantage when I emailed clear one Advantage for documentation of each time they contacted my creditors, that their website it says “In Negotiations” they have to have some kind of documentation of each time that they called or emailed or mailed something to my creditors and I wanted copies. I received an email back from them saying they didn’t have any documentation.
Settling your debts used to be a less than reputable practice but has recently gained prominence. It is basically where you hire a debt relief company to negotiate with the creditors on your behalf. The goal is to get them to agree to settlements where you make lump sum payments for a portion of your debts (this should much less than your total balances). In return the creditor agrees to forgive the rest of the debts.
The Financial Consumer Agency of Canada (FCAC)[8] advises Canadians to do their research and find a trustworthy organization and a qualified counsellor. They suggest making sure an agency is in good standing with a provincial or national association. They recommend looking carefully at the agency's advertising to see if it sounds too good to be true. Claims or misrepresentations to look out for can include repaying only a fraction of your debt, quickly fixing your credit score, or claiming to be part of a government program. They also suggest consumers inquire about an agency's services, costs, and counsellor qualifications.[9] The FCAC has also warns Canadians to be careful of companies offering to help them pay off their debt or repair their credit. Things to watch out for include guarantees to solve debt problems and using high interest loans to pay off debt. Some of these companies also claim that they can file a consumer proposal on behalf of a consumer. However, the FCAC points out that only a qualified licensed insolvency trustee can help someone with a consumer proposal or bankruptcy.[10]
If a consumer’s financial problems resulted from too much debt or inability to repay their debts, a credit counseling agency might recommend enrollment in a debt management plan (DMP). A certified credit counselor will review a consumer's overall financial situation and offer customized money management advice. This advice may include a DMP designed for the client's unique circumstances. 
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.
The negative impact is due to the fact that you must close your accounts while in the program, and this can affect your debt-usage ratio. This factor accounts for about 15% of your credit scores. (On the flip side, paying down your debts will improve your overall debt levels. Some consumers see their scores improve during and after one of these programs.)

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)!!!

Compare debt settlement vs. debt consolidation programs as they have differences between the two. One or the other may be a better option for you and your family, and it depends on your personal financial situation. Get information about the pros and cons of these two approaches. Read tips on which option may be the best option for you and your situation. Compare debt settlement and consolidation.
The second thing that you can do is trim your expenses. Go over each line item on your budget and ask yourself, “how can I make this number smaller?” It may involve cancelling services that you rarely use like a gym membership, Netflix subscription, etc. It might even involve reducing the amount of times that you eat out at restaurants each month. The amount that you slash depends upon your commitment level to getting out of debt.  The more committed you are, the easier it will be for you to give up some of the unnecessary amenities in life. You might not even need to sacrifice much if you can find these items or services for less. Check out Clark’s Free and Cheap List to help you with this process.
Refinance your car loan - Many people do not know that they can refinance their existing car loan, and there is usually not a fee involved. With today’s historically low interest rates, even on automobile loans, individuals can potentially save thousands of dollars in interest. It is free to submit an application for this service. Learn how to refinance your car loan.
In a DMP, you deposit money each month with the credit counseling organization. It uses your deposits to pay your unsecured debts, like your credit card bills, student loans, and medical bills, according to a payment schedule the counselor develops with you and your creditors. Your creditors may agree to lower your interest rates or waive certain fees. But it’s a good idea to check with all your creditors to be sure they offer the concessions that a credit counseling organization describes to you. A successful DMP requires you to make regular, timely payments; it could take 48 months or more to complete your DMP. Ask the credit counselor to estimate how long it will take for you to complete the plan. You may have to agree not to apply for — or use — any additional credit while you’re participating in the plan.

Consolidating student loan debt can also make it possible to get more borrower protections. For example, while Parent PLUS loans aren't eligible for income-based repayment, when these loans are consolidated under the Direct Loan program, they can become eligible. Income-driven repayment programs can result in a lower monthly payment and open up the door to loan forgiveness after a sufficient number of payments are made. 
However, carrying a large amount of debt that is difficult to repay also negatively impacts your credit score. For example, debt from student loans can accumulate and increase over many years of nonpayment. So, you have two choices in such desperate situations: pay off your debt from student loans slowly, missing minimum payments and taking damage to your credit score or hire a debt relief company, settling the debt from your student loans faster while taking a hit to your credit score.
If you are overwhelmed by debt, you might consider hiring a debt settlement company to help you. Debt settlement companies negotiate payments with each of your creditors. You then pay a monthly sum to the debt settlement company, who distributes your payment among your creditors. By doing this, you can get out of debt faster. Here’s a breakdown of how the companies compare against each other and other debt relief companies.

Look for a nonprofit credit counseling organization that belongs to either the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA). They ensure member agencies pass rigorous standards set forth by the Council on Accreditation or another approved third party, and that their counselors pass a comprehensive certification program. Even if they are members of such organizations, though, be picky.
It depends — is your credit in enough shape to qualify for a lower interest rate on a consolidation loan? Will you be able to make the monthly payment associated with the loan? Unlike a credit card, where you can pay the minimum, an installment loan locks you into a payment each month for a set period of time. You can also consider a balance-transfer credit card, which could help you save on interest. More info on the pros and cons of all those options here:
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InCharge does not report your participation in a debt management program or plan to the credit bureaus, however your creditors might. Your credit score may decrease when your credit cards are closed and then increase as you make consistent on-time payments over the course of the program. Every person’s credit situation is different. In order to better understand how a debt management program may affect your credit score, learn more about how credit scores are calculated.
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