You may be able to lower your cost of credit by consolidating your debt through a home equity loan or home equity line of credit. With a home equity loan, the lender advances you the total loan amount upfront, while a home equity credit line provides a source of funds that you can draw on as needed. But keep in mind, these are secured loans that require you to put up your home as collateral. If you are unable to make payments on time, you could lose your home.  
Shady. I have to work with these ” yahoos” daily as I am a debt collector. They will not accept the guidelines set by the creditors to provide settlement options to their clients. They INSIST that I take very low and unreasonable offers to creditors and even if I manage to get them approved then say THEY have to get them approved before paying out. I feel if you are making an offer to settle, it is only fair that you can fund the settlement instead of jerking around. It’s a waste of everyone’s time and is unethical. You can’t make offers to creditors that you can’t fund!
On the opposite end of the spectrum, American Consumer Credit Counseling is impressively detailed with their FAQs and discussion of debt management. They offer a debt management calculator that allows potential clients to input their creditors and outstanding balances to get an idea of the savings they may realize. Established in 1991, the company does business in all 50 states and is accredited by the BBB, AICCCA, and ISO. Their fees are also low ($39 to enroll, and from $5 to $35 monthly). However, they will only deal with unsecured debt, and the site pushes the debt management plan a bit more heavily than other competitors.
Thrivent: Partnered with Thrivent Federal Credit Union, Thrivent Student Loan Resources offers variable rates starting at 4.13% APR and fixed rates starting at 3.99% APR. It is important to note that in order to qualify for refinancing through Thrivent, you must be a member of the Thrivent Federal Credit Union. If not already a member, borrowers can apply for membership during the student refinance application process.

Don’t be afraid to have many budget categories. It will help you have a greater understanding of where things are going. Some regular expenses include internet, cell phone, household goods, medical costs, pets, haircuts, car repair, and home repair. Not every item will have an expense every month, but by setting some money aside for those irregular expenses, you’ll be ready when they hit.


The Telemarketing Sales Rule, enforced by the Federal Trade Commission, requires companies that sell debt relief services to explain their fees and tell you about any conditions on their services before you sign up; it also prohibits companies that sell debt relief services by phone from charging a fee before they settle or reduce your debt. For credit counseling that promises to get you into a DMP, that means the company cannot collect a fee until you have entered the DMP and made at least one payment to your creditors using the DMP.
At this point, you will need to continue following the advice of the credit counseling agency you hired to help and remember the benefits of being debt-free. Life is a lot more difficult when you’re juggling credit card bills and other payments each month. If you want to avoid winding up back in debt, it’s crucial to remember how far you’ve come and how wonderful freedom feels.
I have a rental duplex and it is underwater, owe about 85,000 worth about half that much. At 65 I am thinking about walking away because it is getting too costly to maintain. Detroit is in crisis and I don’t feel safe going there for rents. I spoke to my mortgage company and they stated they couldn’t help me under the President new laws for rental property. I am concern about my credit if I walk away, even at my age. When you are not rich you need good credit.
Debt Settlement is making a deal with creditors to pay less than the total balance owed. As attractive as that sounds, there are some severe penalties, notably to your credit score and tax liabilities. Debt settlement costs include attorney fees (typically 10-20% of amount settled) and taxes owed on forgiven debt. Debt settlement negatively impacts credit for several years.
Peer to peer lending low interest loans can be helpful in some cases. This is a fairly new business, but a number of peer to peer lending sites may offer help, such as Prosper, Lending Club, and Zopa. The money can often be used for paying any number of bills or handle various forms of arrears. These companies and their services can help you reduce, consolidate and pay off credit cards, automobile loans, medical bills, and other higher interest rate loans. While they do often have minimum credit scores needed (especially when consolidating debt) They can be an option. More on peer to peer loans.

Once a credit counselor has reviewed your situation and you both agree that a debt management plan is the next best step, the counselor will negotiate with your creditors to see if they'll agree to reduce interest rates or monthly payments, waive fees or reduce the amount you owe. When your credit counselor reaches an agreement with all creditors, you'll begin making monthly deposits with the credit counseling organization, and it will use the money to pay your unsecured debts.
Chapter 7 bankruptcy allows you to discharge most debts, which means the debt disappears after bankruptcy proceedings. But there are strict income limits to be eligible -- generally your income must be below the median in your state -- and you might have to turn over some of assets to be sold so proceeds can be used to repay creditors. Your house, a very low-value automobile, and tools used for business are usually exempt from being sold. 

It’s important to know that as part of this first call National Debt Relief will run a soft credit check to see who your creditors are, how much you owe and if your debts are eligible to be included in a debt settlement plan. We recommend taking quick stock of your budget and your monthly expenses. The debt specialist you speak to will ask about this so they can calculate how much you can afford to pay into a debt settlement plan.

DISCLAIMER - Debt.com does not provide direct debt adjustment services, but, upon request, acts as a locator service for BBB registered companies. It is ultimately up to you to determine whether the companies that we may introduce you to are appropriate for your situation. For debt consolidation programs, where permissible by law, companies may charge a one-time enrollment fee typically from $25 up to $75 for account establishment and for debt relief proposals submitted on your behalf to each of your creditors. Monthly program administration fees will vary from $5 but no greater than $75 depending on your state of residence and/or the number of creditors who agree to accept proposals and become enrolled in the program. Fees subject to change if permissible by law. For debt settlement programs, by law, you may not be charged any fee until a debt settlement is arranged on your behalf, you approve the settlement, and at least one payment is made towards the settlement. Each program offered by independent financial service providers is unique so ask them for their complete details of the program and fees.
The most important message is to DO SOMETHING. I would encourage folks to do the reverse of taking on the larger balances first and paying more on them. Pick a smaller balance, high interest card and pay it off. This gives motivation to get the next one up the ladder in your payoff plans. For the sake of your credit score, remember length of history and pay history go together to determine your score so closing that account may actually lower your score over time. If you cannot trust yourself not to use it, close it anyway.

Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
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