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It’s crucial that you monitor the statements received from your creditors each month (The creditors will not disclose this information directly to us). You should compare that information to what’s in our monthly progress report and ensure that everything matches. If anything is different between the creditor statement and what we show in our paperwork, give us a call.
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.
Best Answer:  That National Debt Relief is a Scam! But they are slick in the way that they operate and know tricks to cover up their dirt so it's hard to prove. A friend of mine signed up for their debt settlement program about 7 months ago and they screwed her over so much in fees and ruined her credit in the process that it sent her into a great depression. I knew they were up to no good because they kept relentlessly pursuing her to sign up with their scam program just like you described. I wouldn't trust this National Debt Relief with a 10 foot pole no matter how they look on the surface..they are nothing but some crooks preying on people who are already struggling! WARNING: I did a search and even found how they could be operating under different names (see source). I been around a long time and am aware of companies like this that keep changing their names, locations, and phone numbers to cover up their dirt and then keep coming back under a clean slate with clean BBB record, and more fake testimonials and all to just repeat the process, keep duping the public, and making tons of money . This makes me sick to my stomach! I sure hope the FTC and other authorities will continue to pursue and put a stop to these scams - no matter slick these crooks operate the people are getting wiser & wiser everyday not to fall for these scams. I commend you for being smart enough to ask around on this matter. Also you can check with your creditors and usuallly they will be willing to work with you if you come at them honestly and sincerely. This is what I did years ago -on my own- to settle my debt and my creditors reduced my payment and debt amount until it was cleared. Remember: If you are behind on your debt, creditors will usually like to get paid something rather than nothing at all - so this makes them highly motivated to work with you.
The big advantage of the debt snowball is scoring quick wins. Science backs up the idea that this is the best approach, because you'll stay more motivated as you see debt balances paid off. But there's an obvious downside: Your smallest debt may not have the highest interest rate. If you're waiting longer to pay off high-interest debt while focusing on lower-rate debts, you'll pay more interest over time.  
Indeed, accumulating debt can certainly take an emotional toll and negatively impact your overall life satisfaction. However, you can take simple steps to pay down debt and turn your financial situation around. No financial situation is permanent, and with some patience, persistence and implementing of best practices, you can find yourself back on the path to financial recovery. So take a deep breath, keep your emotions at bay and work on tackling your debt in a practical manner.

Both are possible solutions to problems with debt. A debt management program is not a loan. It consolidates unsecured debts and tries to lower monthly payments through reductions on interest rates and penalty fees. A debt consolidation loan is actually a loan, with interest charges and monthly payments due. With a debt consolidation loan, you would have to qualify to borrow the amount needed to pay off your debt. The interest rate is normally fixed and, depending on your credit score and history, may need to be secured with collateral like a home or car. Debt consolidation loans usually run 3-5 years.


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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.
The benefit of going for this type of debt relief option is that your monthly payment will most likely be much lower than the sum of the payments you are currently making. You may also have any penalty charges waived as well as any fees. Most of all, you will no longer be harassed by your creditors as they will be handling everything through the debt management agency.

This is a very important first step before trying to start retiring debt. Having an emergency fund will help keep you from getting deeper into debt when unexpected events happen. If, for example, you have $1,000 in cash set aside and your car or house needs a sudden repair, you do not have to put that repair on a credit card. Ideally, you will want to get to the point where you have an emergency fund worth three to six months of expenses so you can support yourself temporarily if you suddenly lose your job, but the $1,000 is a great start.


Chapter 13: Yes. Chapter 13 also discharges debts, but many of the nondischargeable debts like recent taxes and past due child support must be paid in full in the Chapter 13 plan. Unsecured debt like credit cards will only be paid in a Chapter 13 plan if you have the income to cover it. Sometimes unsecured creditors receive a portion of their debt and sometimes they receive nothing at all. But even if they’re not paid they’ll be discharged if you complete your plan. To see how this works, visit Chapter 13 Bankruptcy Basics. 

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.
This involves opening several bank accounts — your regular current account, one for your own wage, another for tax and finally one for a rainy day. You then apply the percentages to your income and as soon as you get paid, you transfer these percentages into the accounts. For example, you have 70 percent as your wages, 10 percent tax and 5 percent for rainy days. This leaves 15 percent in your current account for expenses. After this, you’ll hopefully be in a position to reach your earning target with the sales you already have. However, you can also work backward, using these percentages, to price your services and products.
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.
Avoid outrageous upfront fees. A small initial fee (up to $50 or, in rare cases, as much as $100 if you have a lot of debt or high income) is normal, but large upfront fees are out of line. If any agency asks for a fee (or donation) make sure that you know what it will cover, and get it in writing. Find out if you'll have to pay any additional fees to start the program. Don't get tricked into paying one "consultation fee," and then an "application fee" or "an enrollment fee." If you're truly unable to pay, look for an agency that is willing to waive the fee or spread it out (without charging additional fees for doing so).

To get out of debt using the ladder method, start by attacking the balance on the account that charges the highest interest rate, McClary says. While you’re ramping up payments on that account, you make minimum payments on the others. When your highest-interest balance is gone, you move down a rung of the ladder and apply all your extra payments to the account with the next highest rate. You repeat the process until all your debt is eliminated.
Debt management programs serve the dual role of helping you repay your debts while creditors receive the money owed to them. These debt management plans are a systematic way to pay down your outstanding debt through monthly payments to your credit counseling agency. Your creditor accounts will always be credited with 100 percent of the amount you pay through an NFCC agency. By participating in this type of debt management program, you may benefit from reduced or waived finance charges or fees, and experience fewer collection calls. When you have completed your payments-which typically takes 36-60 months- it may help you reestablish credit.
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