Once you have enrolled in a debt management plan, and if you let your debt management plan pay all of your creditors each month, you may never have to worry about your debt again. Your payment is auto-debited from your bank account, and your debt will be gone in just a couple of years. Of course, it is smart to allocate more money to your payments whenever you are able, but that is just a matter of logging onto your debt management company account page and increasing your payment.
Credit Limitation: This option only works if you have good credit; excellent credit is better. Balance transfer credit cards offer 0% APR on balance transfers when you open the account. An excellent credit score means you qualify for the longest 0% APR introductory period possible. Some cards have promotions that run up to 18 or 24 months. That gives you up to two years to pay off your debt interest-free.
“Clients who are able to stay with the program and get all their debt settled realize approximate savings of 50% before fees, or 30% including our fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.”
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. 
It’s hard at first, because most of us aren’t used to doing that. (Especially if we’re living on a low income.) But it’s absolutely doable, and gets easier with practice. And once you start paying stuff off, it becomes even easier because your money isn’t flying out the door to service debt. You have MORE money available, which makes things easier still. It’s the exact opposite of a vicious circle.
Contact your bank and stop payments to the agency servicing your debt management program as soon as you become aware the agency has shut down. You should immediately contact the creditors involved and ask if you could continue paying them directly or would they work out another payment plan. Also, ask for a credit report and verify that previous payments you made to the DMP agency were sent to your creditors. If payments were missed, there could be some negative consequences to your credit score. Finally, you could contact a nonprofit credit counseling agency and ask them to intervene on your behalf with your creditors.
Fully certified. The National Foundation for Credit Counseling (NFCC) is the largest, longest serving and most well-respected credit counseling network in the country. All Clearpoint counselors must be NFCC-certified, which means they have studied counseling principles, understand consumer rights and responsibilities, and have passed examinations showing their proficiency in these and other areas.
Through a nonprofit credit-counseling agency, you can work with a counselor to resolve your financial problems on your own, says Bruce McClary, vice president of public relations and external affairs at the National Foundation for Credit Counseling. Or you can enter what’s called a debt management plan. Through that plan, you can consolidate your credit card payments and get the cards’ interest rates reduced, making your financial obligations easier to tackle.

Consolidate debt using a low interest rate credit card. Discover the 10 best low interest rate credit cards as determined by CardRatings and Consumer Reports. They also tend to have very competitive fees. A low interest rate credit card can greatly reduce the amount you need to pay on your outstanding credit card bills and debt. Find a list of the 10 best credit cards for consolidation.
Most of the major banks and card issuers are more aggressively offering their own debt reduction and settlement plans for unpaid debt and bills. It is in their best interest to do this as well. Not only are they cutting out the middle man, but they will also receive at least some payments from the customer, rather than nothing. Find a list of credit card company settlement programs.
Credit score takes a beating. This definitely will happen with either debt settlement or bankruptcy. Even if you eventually reach a debt settlement with a lender, there will be a note on your credit report for seven years that says you missed payments and settled for less than what was owed. Chapter 7 bankruptcy stays on a credit report for 10 years and Chapter 13 bankruptcy is there for seven years. This will make it difficult to get a loan for a home or car at an affordable rate.
I know it’s fab to live in New York City or Los Angeles or San Francisco but if you’re going to be forever in debt and never able to retire, it’s not worth it. I know it takes money to move so you can choose from our other options; finding a cheaper place, getting a roommate, moving back in with your parents until you’ve saved enough to make a move.

Debt management companies are springing up everywhere. These companies help "manage" your debt by taking one monthly payment from you and distributing the money among your creditors, with whom they've often worked out lower payments and lower interest. This is not a loan as with debt consolidation. Sometimes people get the two confused. However, because Americans are up to their eyeballs in debt, the debt management business has become one of the fastest-growing industries today.
Depending on how serious are your financial woes your counselor may recommend a debt management plan (DMP). The way this would work in brief is your counselor will determine how much you can pay and then negotiate with the creditors on your behalf. The negotiation can be for longer terms or lower monthly amounts determined by what payments you could afford to make. In some cases your counselor may attempt to negotiate a reduction in your interest rates. If all or most all your creditors agree to your debt management plan you would stop paying them. Instead, you would send one payment a month to the credit-counseling agency and it will distribute the money to your creditors per your DMP. The biggest downside to one of these plans is that they typically take five years to complete. You would most likely be required to give up all the credit cards that are in your plan and would be strongly urged to not take on any new credit until you’ve completed your plan. These are the biggest reasons why nearly half of those debtors who sign up for DMP never successfully complete it.
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.
Consolidate with a home equity loan. If your total debt load, including credit card, medical, and other unsecured borrowing seem insurmountable for you to pay off, then you can use a home equity loan to consolidate and even pay off these bills. While there are some potentially major risks if you do not do this correctly, the approach is an option. A home equity loan can help you eliminate your higher interest, unsecured debt and improve your financial situation.
With debt settlement, your attorney will ask you to stop making payments to your creditors and instead, contribute money on a regular basis to a fund. When the fund reaches a certain level, the attorney will approach creditors and seek an agreement to settle for that amount. If the creditor accepts the agreement, the debt is considered settled. Read more about debt management vs. debt settlement.
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