This company has done a PHENOMINAL job! Can’t say enough positive things about this company. They have made me feel like he’s from the start with no judgment, they have been forthcoming with information & advice. When I have had any communication with the representatives each and everyone of them have been compassionate & professional. The level of stress they have taken off my shoulders it’s truly a saving grace. Thank you NDR for everything you have done for me thus far!
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.
If debt management doesn’t seem quite right for your situation, there are several other debt relief options. I start with the least drastic option, credit counseling, and end with what most may agree is the most drastic: bankruptcy. Of course, all of these methods have their own pros and cons, and only you can decide whether they are better or worse for your situation.
Max Fay is an entrepreneurial Millennial whose thoughtful writing shows he has a keen eye on both. Max has a genetic predisposition to being tight with his money and free with financial advice. At 25, he not only knows what an “emergency fund” is, he already has one. He wrote high school and college sports for every major newspaper in Florida while working his way through Florida State University. That experience was motivation to find another way to succeed financially and he has at Debt.org. Max can be reached at mfay@debt.org.
Find a good credit counselor. Almost all DMPs are administered by consumer credit counseling agencies--so much so, in fact, that the terms "credit counseling" and "debt management" are often used interchangeably. Thoroughly researching the agency is the most important thing to do before deciding to enroll in their debt management program. The FTC has put together a simple guide to help you get started and choose the right plan.

You might be wondering, “Why is having an emergency fund important”? Well, if you don’t have any money in the bank and an emergency does happen, how are you going to pay for it? For most people, credit cards become the funding source for those emergencies. If you are trying to get out of debt then you need to put a buffer between you and debt; that is exactly what an emergency fund does.

Another obstacle that trip up so many is thinking you'll make progress on debt repayment by making your minimum payments. Yes, it minimizes inconvenience and will seem easier than other strategies, but it's costly. Imagine, for example, you owe $20,000 on your credit card(s) and that you're being charged a 25% interest rate. If your minimum payments are 3% of your balance, you'll be starting out paying a whopping $600 per month, meaning you'll have to come up with $150 per week. If you can't, your balance will be growing, digging you deeper in debt. In that situation, it can take more than 30 years to pay the debt off, with your total payments exceeding $63,000 -- all for a $20,000 balance owed.

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.
Yes, but this is a real commitment of time and resources. Here is how it works. List all your debts (except your mortgage) from smallest to largest. Pay the minimum due on all debts, but the smallest. Attack the smallest debt with as much money as you have available — $100 a month, for example – until it is paid off.  When that is paid off, take the $100 a month, plus whatever the minimum you were paying on the second smallest debt, combine them and go after the second debt. Keep repeating until you have gone through each debt. The idea is to gain momentum in your bill paying by having success.
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.
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.
If your expensive habit is smoking or drinking, that’s an easy one — quit. Alcohol and tobacco do nothing for you except stand between you and your long-term goals. If your expensive habit is slightly less incendiary – like a daily latte, restaurant lunches during work hours, or fast food — the best plan of attack is usually cutting way down with the goal of eliminating these behaviors or replacing them with something less expensive.
Many have heard of the tremendous benefits of compounding interest regarding investments before. However, when related to debt, compounding interest works against you as interest builds upon growing outstanding balances. This means that the longer you hold higher-interest debt, the harder it is for you to get out of debt. A higher-interest debt will cost you much more over time and should be your highest priority in paying off. Typically, credit card debts and personal or small business loans will have the highest interest rates.
Keeping a budget helps ensure you have enough money to cover your monthly expenses. Plan far enough in advance and you can take early action if it looks like you won't have enough money for your bills this month or next. A budget also helps you plan to spend any extra money you have left after expenses are covered. You can use this extra money to pay off debt faster.
Making extra payments should allow more money to come off the principal -- so next month, you'd pay interest on a smaller principal balance and your interest cost would be lower. That's why paying extra can be so helpful in becoming debt free. Not only do you reduce the remaining balance owed, but you also reduce the interest cost that causes your balance to grow. 
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. 
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).
We are a nation that pays far too much attention to education for the young, but not financial education, just all the subjects one needs to have a well-rounded understanding of the world and our place in it. Why not give our children the financial tools for them to succeed while their minds are most formative, so they can be prepared to be entrepreneurs at an earlier age? This may be the one thing we are missing which could change our entire future as a nation.
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:

Thank you for helping me to financial freedom. My two customer service agents Roger ** and Ed ** were very knowledgeable, professional, and helpful in getting me started with NDR. I want to say my experience so far is satisfactory. I would like to personally thank my service support agents. I rate NDR experience as a 5 star rating. Superb customer service at its finest. Look forward to getting out of debt soon. Thank you so much NDR team. Highest Regards.
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.
We are really happy to hear that you found the help you need with your debt via CareOne Debt Relief Services and we appreciate your post explaining the services we offer. We have some exciting changes coming up on our site. We are stepping up our game with the information and resources we provide to people to help them not only get out of debt, but to also STAY debt-free. We hope that you will come and check us out at http://www.CareOneCredit.com and let us know what you think!
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.
Chapter 13 is a three- or five-year court-approved repayment plan, based on your income and debts. If you are able to stick with the plan for its full term, the remaining unsecured debt is discharged. It will take longer than a Chapter 7 — but if you are able to keep up with payments (a majority of people are not), you will get to keep your property. A Chapter 13 bankruptcy stays on your credit report for seven years from the filing date.
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.
If you are currently serving or have served in the military, then you face a unique set of financial challenges. Consolidated Credit works closely with Southern Command, Army OneSource and the Department of Defense to help military Service Members and Veterans get the financial help they need. We also offer specialized debt help for military personnel.
Debt forgiveness is another potential strategy for anyone ready to admit "I need help with my debt." This involves paying your creditors a lump sum payment that is less than what you owe and ask them to wipe out your debt. While this is sometimes effective, it can also backfire and add even more debt to your totals. While ACCC does not get involved in debt forgiveness plans, we can help you understand the benefits or potential risks this approach may pose.
“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.”
Start paying into your settlement fund. National Debt Relief asks you to make monthly payments into an escrow account that it can eventually use to pay your debt settlement costs. This monthly payment is typically lower than monthly payments on your debt. While you can stop making payments on your debt if it’s unaffordable, you’ll end up paying more in the end.
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.
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.
Each week when you make a payment, subtract the amount, so you have a new balance. The point of this is to see those numbers getting smaller each week. It’s motivating. We also didn’t list dates for the second debt on the list because as we get to the end of each debt, we might reach just a little further so we can pay it off a week or two earlier.

Asking for help with debt can be difficult. Those in trouble may be hesitant to let others know, but Kalkowski says there should be no shame in reaching out for a lifeline if finances become unmanageable. "There are a lot of Americans in this sinking boat," she says. Rather than going it alone, use the resources available to keep your finances afloat.


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.
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.
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.
Nearly 50% of all college graduates leave school with private or federal loans, and the average US student leaves with at least $10,000 to repay. This can be a substantial burden for recent graduates, which makes student loan consolidation a smart - and sometimes necessary - choice for any graduate in need of debt help. Consolidation of federal loans is easy, and might save you hundreds of dollars by lowering your interest rate. Read our guide to federal and private student loans, browse our articles on the topic.

Today, I have no consumer debt. By choice, I’m not debt-free. I do have a mortgage on my primary residence even though I could pay it off. I also did not pay off my student loans early. In these cases, I’m using debt conservatively and consciously to advance my financial goals. But all the nasty stuff—credit cards, personal loans, and an auto loan—is long gone.


McClary says the best time to go to creditors for help is before the situation is out of control. Don’t wait until an account is about to be closed because you’ve had several months of late or missed payments. Tell the creditor you’d like to pay down your balance faster and want to know what services are available to help you manage your debt better.


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.
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