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.
The exception? If you take out a loan from your retirement account to consolidate credit card debt, you’re more likely to see your credit improve. Retirement account loans aren’t reported to credit reporting agencies, so your credit reports will show less debt with no new loan. However, retirement loans carry their own risks, so proceed with caution.

Who’s it best for? Anyone who doesn’t like surprises will appreciate Cambridge. The clear FAQs include questions any prospective client would want answered (for example: “How will the program affect my credit rating?”) and there are a lot of financial basics, including budget worksheets and a debt payoff calculator. Cambridge is also willing to work with limited kinds of secured debt.


I LOVE LOVE LOVE this article – I’m planning to share it with my husband tonight. Your approach and honestly in the article is so freshing since I myself was in a crazy amount of debt as of last year ($22K at the peak). Essentially, I followed all the steps you mentioned (took a hard look at my total debt, got a higher ($7K more) paying job, transferred balances to a 0% card and paid off a load of consumer debt. I’m scheduled to pay off all my consumer debt by April 2011.
There's also an important caveat: You need to determine if the lender you're thinking about repaying charges a prepayment penalty for early payoff. Some personal loans, auto loans, and mortgages charge if you pay off your debt before the designated time. If so, you may not want to put that debt on your early payoff list, as any money saved on interest might be lost to the penalty.
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.

I have been with National Debt Relief Service and thought I would save 40% to 50% of my debt. but, so far, with 23% customer fees among others, the 7 I have settled for $7333.64 out of $10,388 with their fees came to a net savings of less than $3055. The fees are very high and now that I am signed up, I cannot leave since they say the creditors would not honor the settlement amounts.
Many approved credit counseling agencies provide counseling services in languages other than English. For a list of agencies and the languages that they offer, select the language from the drop down list below and click "Go". If you are looking for a language that is not found on the drop down list, please contact the Credit Counseling Unit at the Executive Office for U.S. Trustees at ust.cc.help@usdoj.gov.
Credit card forbearance programs are offered by companies. Once again, the major lenders including Chase, Bank of America, Citibank, Discover Card, and others offer credit card forbearance programs that may allow consumers to delay monthly payments from six months to over a year. These programs may also lower interest rates, reduce a customer’s minimum monthly payment, or waive all fees.

On the plus side, if you pay off a card balance that’s close to the credit limit, you may improve your “utilization ratio”—the ratio that compares your credit limits with the balances you currently have—provided you leave the card open after paying it off. But simply moving balances from one card to another is unlikely to do a whole lot for your scores.
This was a really great article! It is true that you can’t approach debt like a fad diet, it needs to be a lifestyle! And everyone has different lifestyles so it’s okay to approach paying off your debt differently than your friends or family! It just is important to keep at it and make a change to the way you used to live when you were getting yourself in debt! Thanks for sharing this with us!
When you first create a financial plan, you never know what the results will be. Sometimes, it can even be a little scary to see how things will look if you don’t make any adjustments. The key is to have patience. Financial planning is a process and not an overnight event. In creating a financial plan, focus on the things that you can control and keep a long-term perspective.

When it comes to student loan debt, you might consolidate federal student loans into one loan through the Department of Education's Direct Consolidation Loans. Also, or alternatively, you might take out a private loan to consolidate debts -- that's generally referred to as refinancing student loan debt. The advantages of consolidating can include lower monthly payments (if you extend your payment period) and getting out of default, while drawbacks can include less flexibility and a longer payback period -- which can mean more interest paid, overall.
Customer reviewers are mainly impressed with National Debt Relief’s quality customer service, which most report is helpful and patient, considering the situation. At least one customer was even able to start repairing their credit score. Negative reviews tend to have less to do with the drawbacks of National Debt Relief than debt settlement itself.

Borrowers also have protections from predatory lenders. Much of these is legal in nature. Many states and the federal government have created laws and rules that payday lenders need to follow. The regulations can cap interest rates, limit the number of times funds can be issued, and offer additional assistance. Read more on the payday laws in your state.


Consumers with multiple sources of debt – credit cards, mortgage, student loans, etc. – often try and address each one every month. Bad move! Remedy:  Go back to your budget, trim spending to bare bones on everything but essentials, and create a $100 (or preferably $1,000) surplus that goes directly at the credit card with the highest interest rate. When that’s paid off, go after the card with the next highest interest rate and keep going until all credit card debt is eliminated.
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.
InCharge is the only national credit counseling service that offers online counseling: enter your income, assets and debts and you’ll receive a personalized debt relief solution – all without having to talk to a person. Other reasons to choose InCharge for consumer credit counseling services: A+ rating from the BBB and we are certified by the NFCC.
If you work hard the commission pays off. They are flexible with hours and everyone has great energy which I feel is most important. Full benefits the whole and PTO. I enjoy going to work and thats an amazing feeling. I want to be here as long as possible. You are your book of business here, in addition no micromanaging is a huge plus for me. I am doing really well so far and look to keep crushing it.
In order to qualify for either type of these bankruptcies you will need to show proof that you are simply unable to repay your debts. You will be required to get credit counseling from an agency that has been approved by the U.S. Trustee’s office and this must be within 180 days before you file for bankruptcy. When you complete your counseling the credit-counseling agency will provide you with a certificate of completion and you must file this no later than 15 days after the date of your bankruptcy filing. If you have worked out a repayment plan with the agency you will also be given a copy of it.
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.
I’ve only been in the program a few weeks. I’m rather disappointed with their csr. At first they treat you like you’re golden and give the impression that they actually care. Once I signed up I tried reaching out to the lady who originally helped me,she completely ignored me and has not replied to any of my emails. It just feels awful being tossed to the side like garbage after initially being treat with attention and support.
This company works with unsecured debt – typically credit cards – as well as medical debt, private student loans and personal loans. Its debt settlement plans require you to stop paying your creditors and instead make payments into an escrow account set up by National Debt Relief. You control the money in this account. After several months of making installments into this account the settlement firm will begin negotiating with your creditors.

Find free, simple steps to take in order eliminate credit card debt and to save money on all of your monthly bills. Experts offer free, do it yourself advice and simple steps that you can take yourself to eliminate credit card debt. The goal of these methods is to help you become debt free in a fairly short time frame. While there is no easy button to press, taking some small steps now can put you on the right path. Many are tried and true. There are steps to follow to eliminate credit card debt, as it does take time.
People are creatures of habits and spending money is no exception. We shop at the same stores, eat in the same restaurants and drive the same car, because it’s comfortable. It’s also costing you more than you can handle financially. Remedy: If you won’t change your spending habits, you won’t ever get out of debt. Start with your morning habits (have your coffee and breakfast at home). Go to lunch with a brown bag, not a wallet. In the evening, watch games or movies on TV, while eating a home cooked meal. You will see an immediate impact on your daily spending habits. You don’t have to do without. You just have to make better choices with what you do.
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.
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.
If you're not able to secure a lower interest rate from your current credit card company, you may be able to transfer outstanding credit card balances to a card with a lower or zero interest rate (called a balance transfer credit card). Credit card companies often offer promotional rates for a limited period in exchange for you transferring a balance from an existing card to a new one. You'll need to meet the balance transfer card company's qualifications, and will probably need to pay a transfer fee that equals about 3 percent of the balance you're transferring.
Many approved credit counseling agencies provide counseling services in languages other than English. For a list of agencies and the languages that they offer, select the language from the drop down list below and click "Go". If you are looking for a language that is not found on the drop down list, please contact the Credit Counseling Unit at the Executive Office for U.S. Trustees at ust.cc.help@usdoj.gov.
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.
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.
When we were getting out of debt, there were several times where extra money fell in our laps that we had not factored into our debt elimination originally. We decided to take this cash and use it to tackle our debt. Some good examples would be a tax refund, selling a car, an inheritance, winning a bet, etc. The more cash you can put towards your debt, the faster it will disappear.
Take steps to rebuild your credit and improve your credit score, which in turn, could give you access to more credit in the future. For starters, focus on implementing a plan for paying off debt, and work to keep your balances low on credit cards. Keep in mind that improving your credit score requires small, responsible actions over time, so be patient and set long-term objectives. For more tips on how to improve your FICO score, take a look here.

Accept a plan only if you can fulfill your requirements. If you can't make the monthly payment the program requires, don't enroll. Ask if they can get it any lower, contact your creditors yourself, and/or check with another debt management agency. Again, be aware that many debt management plans require you to avoid taking on any additional debt or at least any additional revolving credit debt (i.e. credit cards, store charge accounts). Understand the terms and conditions, and make sure you can follow through on them.
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.
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
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.
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.
If you have a good salary and have established income/tax returns, there are lending companies like SoFi, Lending Tree and Lightstream that offer loans at competitive interest rates. Thus, you can take a low-interest loan and use it to pay off your high-interest debts but make sure to stick to your monthly budget so you won’t be spending beyond your limit, and you will be paying off the low-interest loan.
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.
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. 
Try to put some money down on your higher interest student loans. The way I paid off my bachelor loans was whenever i got a refund back from the college or from taxes a portion of that went to the student loans. The more you tackle your higher interest loans the better your credit. Now if you have like tiny ones like 1,000 try paying those off if your not financially ready to tackle the bigger interest rates ones.
Make sure the company requires complete information from current statements before giving you a quote. The debt counselor will need you to provide all your current credit card and loan statements before they can tell you how much your monthly payments will be or how long it will take to complete the program. Beware of anyone who gives you a quote without thoroughly researching the following first:
Student loans:The federal government and private lenders issue loans to cover education costs. Federal student loans generally have a low interest rate and important borrower protections. Working in a qualifying public-service job entitles you to loan forgiveness after 120 on-time payments. Income-based payment plans also cap payments and allow a portion of your loan to be forgiven. While private student loans don't come with all these protections, rates may still be relatively low. And if your income is below $80,000 as a single or $165,000 if married filing jointly, you can deduct up to $2,500 in student loan interest from your taxes. Because of these perks, you may not want to pay off student debt early.

What if I have $60k+ student loans, $14k credit cards spent on medical bills, etc., from the last few years of waiting on disability? What do I do? I will never be able to do the job that my degree holds or most likely any job for that matter. My ss Will be around $1250/month. I don’t even know how I will live on that. I have never been able to get a mortgage to the student loans. Thank you.
Debt consolidation: This is a safer option to lower your debt costs. While debt settlement forces your lenders to settle your debts for a lower cost, debt consolidation does just what it says: it consolidates your debts into one loan with a lower interest rate. That helps you stop paying high interest. While debt consolidation might not save you as much money, it can keep your credit score intact and is less risky than debt settlement or bankruptcy.
It is also important to know that National Debt Relief uses a company called Global Client Solutions to manage your payments as a third party processor and trust account servicer.  This company has a history of working with many debt settlement companies who have been sued in the state of Washington and across the country for violating various debt adjusting and consumer protection laws.  Global Client Solutions has also been sued itself on a national level by the Consumer Financial Protection Bureau and in the state of Washington.

I recently became fed up with the credit card debt that I have been carrying for 6 years and have *finally* taken action to eliminate it, such as making a budget (and sticking to it!), trying to negotiate a lower APR rate, selling stuff (au revoir, gitane bicycle) and making additional payments on my credit cards. This article was EXACTLY what I needed to read. It’s affirmation that I’m on the right track (:
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.
Consumers can apply for a debt management plan regardless of their credit score. Once they set up an initial consultation with a credit counseling agency, they will go over the details of their debts and their income with their agency who will come up with an action plan on their behalf. If the consumer decides to move forward with a debt management plan, it can take a few hours or a few weeks to get started. “Once the recommendation for a debt management plan is made, it’s up to you to decide how quickly to enroll,” said McClary.
Also known as a DMP, a debt management plan is a debt-relief option offered through a debt counseling agency or debt management company. These companies typically are members of organizations such as the National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies. They work with your creditors to come up with a monthly payment solution that works for your situation.
SoFi has taken a radical new approach when it comes to the online finance industry, not only with student loans but in the personal loan, wealth management and mortgage markets as well. With their career development programs and networking events, SoFi shows that they have a lot to offer, not only in the lending space but in other aspects of their customers lives as well.

Second, there's no guarantee that creditors will accept a partial payment. They may refuse any terms that a bankruptcy alternative proposes, leaving you potentially in worse shape than when you began. Finally, late fees and interest accrue on unpaid balances. That's money you'd have to pay, on top of any exorbitant fees the credit agency itself may be charging. 

I have recently cut everything up and transferred my high interest cc to my lowest int credit card. I’m not able to use any of them anymore. I have $2k in savings at a seperate bank. I am married with no children but I still worry that $2k isn’t enough. My DTI was .88 based on your system. Very depressing but helpful. I’m going to try something drastic and get rid of about $68k in debt on what is currently $71,500 of annual income by the time i’m 30. That gives me almost 3 years. Don’t know why but I feel like writing that actually helped me. Thanks again. I really enjoy the site and this post! Hopefully in 3 years or less i’ll write in with a success story!


Being deep in debt is a very stressful situation – especially if what you owe is more than what you are earning every month. Any breadwinner in the family feels this burden day in and day out. The pressure to make sure that the family is provided for is frustrating. While paying for the usual bills, you need to make sure your debts are paid on time and correctly. Not to mention having extra money to put aside so you will have emergency money for unexpected situations.
Take steps to rebuild your credit and improve your credit score, which in turn, could give you access to more credit in the future. For starters, focus on implementing a plan for paying off debt, and work to keep your balances low on credit cards. Keep in mind that improving your credit score requires small, responsible actions over time, so be patient and set long-term objectives. For more tips on how to improve your FICO score, take a look here.
It’s true that many people get into debt because they lose their jobs. But some people get into debt despite having well paying jobs. It’s good to share information so that people have a plan to save while they have a job so they can weather a job loss. And for those who accumulate debt beyond their means while employed, it’s good to give them a plan of action to “right the ship.” Hope you find something that helps you weather your storms.
Does This Affect My Credit? Yes, debt negotiation will negatively affect your credit temporarily and it can be improved after you have completed the program and you are debt free. The effects are not as severe as bankruptcy. If you are already behind on your bills, your credit score will already be lower so the effects of our program may not be as severe. You have to decide if it’s better to resolve your debt now at a lower cost and then rebuild your credit.
Debt management plans, or DMPs, will lower your interest rates and therefore monthly payments. These so called DMPs are available directly from a credit card issuer, lawyer, debt management company or a non-profit credit counseling agency. The company that you enter into a plan with will negotiate on your behalf with your creditors. This can help you get lower interest rates, waive fees, provide you additional time, and will reduce the total amount of your monthly payments. More on debt management plans.
But debt consolidation is not for everyone. If you have a lot of debt, you may not be able to secure the low debt consolidation rates that this approach depends on. And consolidating debt doesn't necessarily help you reduce it — consumers taking out consolidation loans often find their debt remains the same or actually increases over a period of a couple years. Your ACCC credit counselor can help you decide if debt consolidation makes sense for you.
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.

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.

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