Credit counseling provides guidance and support on consumer credit, money and debt management, and budgeting. The objective of most credit counseling is to help a debtor avoid bankruptcy and to provide primary financial education on managing money. Borrowers with an understanding of money management are assets for lenders as well. Many counseling services also negotiate with creditors on behalf of the borrower to reduce interest rates and late fees.
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.
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In most cases, medical debt has no interest rate attached to it so there really is no gain by including it in a debt consolidation program. Remember the key elements of debt consolidation are: a) a reduced interest rate; and b) lower monthly payment. The one advantage to medical debt consolidation is that it becomes part of your single, monthly payment and could help you pay off the debt faster.
According to research, more than half of American consumers (57%) don’t have enough cash to cover an unexpected expense of $500 or more. Remedy: It’s impossible to predict unemployment, car accidents or busted plumbing, which is why every home needs an emergency fund. Experts say put 3-6 months of expenses aside for emergencies. It might take a while to get there if you’re focused on paying off debt, but again, it has to be part of your monthly budget. Set aside at least 5% of your income in an emergency fund, at least until you have three months of expenses covered.
Find information on credit counseling agencies in Texas near you. Numerous non-profit organizations operate in the state and can provide mortgage, debt, and various other forms of assistance to consumers and homeowners. The agencies deal with issues ranging from credit repair to debt management plans, bankruptcy filing, and other financial matters in Texas, and most services are free of charge. More information is below, including how to get help by county.

Credit card balance transfers. One of the simplest and easiest ways to lower the interest rate on credit card debt is to make credit card balance transfers. When you transfer a balance, you take advantage of a credit card offer that provides a low promotional rate for a limited period. It's common for credit cards to offer 0% interest on balance transfers for anywhere from 12 to 18 months. Balance-transfer cards sometimes charge a fee, such as 3% of the amount transferred, but there are some cards that don't impose charges, and those can be an especially good deal. 
Chapter 13 is typically more expensive than Chapter 7 but I can’t give you a specific total cost for either. It will vary. Your best bet is to talk with a consumer bankruptcy attorney. If you can’t afford to file now, the attorney should be able to help you figure out other options. Keep in mind that they are used to seeing consumers who are at the end of their rope financially, so it’s not something you should be embarrassed about.

If your credit card interest rates are so high it feels almost impossible to make headway on your balances, it’s worth calling your card issuer to negotiate. Believe it or not, asking for lower interest rates is actually quite commonplace. And if you have a solid history of paying your bills on time, there’s a good possibility of getting a lower interest rate.
If debt management doesn’t seem quite right for your situation, there are several other debt relief options. I start with the least drastic option, credit counseling, and end with what most may agree is the most drastic: bankruptcy. Of course, all of these methods have their own pros and cons, and only you can decide whether they are better or worse for your situation.

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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