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.
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.
There are big benefits to this approach. You don't have to go through an approval process -- the amount you can borrow is determined by your policy's value. You can use the money to repay any debt you want, because there's no explanation required for what you plan to do with it. And while you need to pay back the policy with interest, you're borrowing from yourself so you aren't fattening the pockets of a creditor. Furthermore, there's typically no mandatory minimum monthly payment, and interest rates are low. 
Negotiating with creditors can take a lot of time and effort. Many people decide to let companies like National Debt Relief do the work for them. If you take this option, National Debt Relief will contact your creditors to discuss ways to lower your debt. Some companies will agree to lower the amount that you owe. Others will agree to lower their interest rates and waive fees.
We do not have a minimum debt requirement for the debt management program. Our goal is to create a payment plan that is affordable and enables you to pay off your debt within a three to five year period. Our clients have, on average, credit card debt of $15,000. Though we have enrolled clients with as little as $1000 in debt, and more than $100,000 in debt. Our clients have an average annual income of $36,000.
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.
A debt management plan sets up a payment schedule for you to repay your debts, with the goal of helping creditors receive the money owed to them and ultimately improving your financial and credit standing. By voluntary agreement, you deposit funds with your credit counseling agency each month, who sends those funds directly to your creditors. It usually takes 3-5 years to complete payments under a debt management program, after which you may be able to reestablish credit.
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