A personal debt consolidation loan provides funds you can use to pay off your credit card balances in-full, leaving only the loan to pay back. Loans tend to have much lower interest rates of 10% or less if you have the right credit score, so you can minimize interest charges and get your debt on a more manageable fixed payment schedule. With the right terms, you can get out of debt without a hassle in less than five years.
Home equity. Another way to refinance your debt is to tap into your home equity to repay what you owe. If you have equity in your home -- that is, you owe less than your mortgage balance -- you can get money out of your home using a home equity loan or a home equity line of credit. You could also refinance your entire mortgage and do a cash-out refi wherein you get a new loan to repay your old mortgage and give you extra cash in the process.
There are, however, some downsides. If you die before the loan is paid back, your beneficiaries receive less money, because the outstanding balance of the loan -- including interest -- is taken out of the death benefit. Plus, since interest is added to the loan's balance if you don't make monthly payments large enough to cover it, the amount you owe could grow to exceed the cash value of the policy and cause the policy to lapse. This could lead to a big tax bill, as you'd have to pay taxes on the cash value of a lapsed policy. 
Afterward, a National Debt Relief specialist will contact you to discuss options and require that you provide proof of your debt balance, income, assets and basic necessity expenses. Any proof that you are struggling with financial hardship needs to be provided during the initial financial review to assess whether a debt settlement program is right for you.
They charge you 18% of all the debt you enroll with them as a fee which means if you owe 15k in debt, you pay them $2700 in fees. But the catch is you pay nothing up front. Your money goes into a savings account monthly but once your first debt is settled, they collect that entire fee from your dedicate savings account. So you then have minimal saved cash available for the next debt that you owe to be settled. So that debt can end up going to a law firm and you get sued.
I’ve done some research on debt consolidation loans from financial institutions, and have found one for a $10,000 loan @ $197/month for 5 years, fixed rate of 6.99%. This will allow us to consolidate all of our credit card & medical bill debt (normally costing around $1000-1500/month) and allow us the cash to get her car fixed, paying one low monthly cost. Once we get her car fixed we are going to start paying more than the $197/month to pay the loan off quicker.

If you're looking for help dealing with high interest rates and difficult-to-manage debt, you may be wondering if debt settlement is a good option for you. Some debt settlement companies advertise that they will negotiate with lenders on your behalf to get your payments reduced. While debt settlement may make it easier for you to pay off your debt, it does have some significant credit consequences.

Things to mention to get them on your side? Let them know how long you’ve been a loyal customer and that you would love to stick around. But, also share that other credit card companies are offering you lower rates, even 0% introductory rates for balance transfers, and that you can’t ignore the interest savings. Usually, they swing into customer retention mode, and they may be able to pull some strings.
A recent credit counseling study has produced significant research findings for the debt relief industry, showing that it is effective in helping people pay off more debt and faster. Researchers at Ohio State University compared two groups of financially distressed people with similar characteristics. The first group received credit counseling and the second did not. Those who received the service reduced their credit card debt by nearly $6,000 within 18 months of counseling. Those who had not received counseling, reduced their debt by only $3,600. Additionally, counseled participants’ available credit ratio was 19% higher than non-counseled available credit. Download the NFCC OSU Credit Counseling Statistics Final Report – 2016.
Hi. We have about $45k in debt , 10 of which is a trailer loan. Daughter is in first year of college. If I decide to see a credit counselor would it hurt her chances of getting fafsa ??? Loans in her name I believe because she is over 18, but we don’t want her owing a lot just coming out of college either, and we have a son graduating in a year as well. This has stressed me out to even thinking of claiming bankruptcy but I’m not going to go to that extreme…..help!! Suggestions? Owe $300k on house, own all cars.
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.

It makes me so sad when I hear people longingly say “I wish I could do that” because chances are THEY CAN. Maybe not the same way as me, or at the same speed (heck maybe they could even go faster!), or under the same circumstances, or using the same exact methods (except for the only spending money they already have part…) but they can certainly do more than just wish or feel bad about themselves.

The typical debt settlement program lasts between 24 and 48 months. One important thing to know is that entering a debt settlement program can have immediate and lasting impacts on your credit score. You’ll stop paying your creditors and your accounts become delinquent. This can lead to calls from collection agencies. National Debt Relief advises you to give its contact information to your creditors and collections agencies when you join.


*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. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. 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. 


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.
The debt relief company has had minor legal issues in the past, but it has overcome those obstacles to become one of the most popular accredited debt relief companies online. Despite negative reviews, it’s clear that Freedom Debt Relief isn’t a scam. In fact, many Freedom Debt Relief clients credit the company for getting them out of debt and teaching them how to avoid future debt. You should always compare several companies before choosing a debt relief option, but this one stands out as one of the top debt management companies.
You didn’t get into debt quickly, and you won’t get out of debt quickly. If you aren’t willing to devote three to five years to wipe out your credit card debt, then you might as well hire a attorney and file for bankruptcy, Ulzheimer says. Just keep in mind that hiring a bankruptcy attorney is expensive, and a bankruptcy will stay on your credit record for seven or 10 years (depending on the type of bankruptcy).
Debt settlement companies also charge a fee for their "service." Most of the time, settlement fees cost between $1,500 to $3,500. Fraudulent debt settlement companies often tell customers to stop making payments on their debts and instead pay the company. Once their fee is accounted for, they promise to negotiate with your creditors and settle your debts. Sounds great, right? Well, the debt settlement companies usually don’t deliver on helping you with your debt after they take your money. They’ll leave you on the hook for late fees and additional interest payments on debt they promised to help you pay!

© 2011 - 2019 Parallel Focus LLC. All Rights Reserved.   JackieBeck.com, The Debt Myth, Pay Off Debt, Destination Debt Freedom, Debt Mythbusters, Debt Is Not Forever, Debt Mindset Reset, and Small Victories are trademarks of Parallel Focus LLC. All other trademarks referenced are the property of their respective owners. Click to view our Privacy Policy, Terms of Service, and our Affiliate Policy.
Another option is consolidating your debts into one manageable account. The main purpose of this is to eliminate the higher interest rate debts, arrive at lower monthly payments and allow you to concentrate on making just one payment. However, this does nothing to your total balance. What you will be doing is shifting all of your debts into just one account.
Getting out of debt is a long-term commitment; there’s not an overnight solution. The most important step you can take is to develop a realistic plan and set a time-bound goal for paying down your debts. For example, you plan to pay off your $10,000 in credit card debt in three years by paying $280 toward your debt every month. However, make sure your goal is realistic for your budget. If you can’t afford that $280 per month, then you’ve set yourself up for failure and may need to consider extending your timeline to five years for a more affordable payment. Having your goal planned out and written down can go a long way to helping you successfully get out of debt.
If you're looking for help dealing with high interest rates and difficult-to-manage debt, you may be wondering if debt settlement is a good option for you. Some debt settlement companies advertise that they will negotiate with lenders on your behalf to get your payments reduced. While debt settlement may make it easier for you to pay off your debt, it does have some significant credit consequences.
A debt management plan (DMP) is an agreement between a debtor and a creditor that addresses the terms of an outstanding debt.[1] This commonly refers to a personal finance process of individuals addressing high consumer debt. Debt management plans help reduce outstanding, unsecured debts over time to help the debtor regain control of finances. The process can secure a lower overall interest rate, longer repayment terms, or an overall reduction in the debt itself.[2]
I believe that YOU get to choose what’s right for your life, because you’re the one who lives it. That includes how to get out of debt. On a related note, I hope that everyone gets out of debt, but I recognize that there are people who don’t want to, and that there are people who think debt it is the greatest tool in the world. That’s ok, because they’re not here.
A debt management program is different from debt consolidation in that it consolidates your payments but not your loan (you are not taking out a new loan as you would in debt consolidation). These programs enable debtors to work one-on-one with a financial professional to get your financial obligations under control and are created for consumers by nonprofit credit counseling agencies.
A debt management plan is a carefully constructed payment schedule that consolidates credit card and other unsecured debts into one affordable monthly payment. Borrowers in a debt management program agree to stop using credit cards in exchange for lower interest rates and more affordable monthly payments. Nonprofit debt management programs enable borrowers to repay their debt in 3-5 years.
×