The other approach is more efficient, though: Paying off your highest-interest-rate debts first. Remember that you compiled a list of your debts and their interest rates. Well, the ones with the highest rates are costing you the most, over time. So to minimize your interest expense, you should pay off a debt carrying a 21% interest rate before you tackle a debt with a 12% interest rate.
American Consumer Credit Counseling (ACCC) provides nonprofit credit counseling and debt reduction services for consumers with credit problems who want to know how to pay off credit cards and how to get out of debt. Our certified credit counselors have helped thousands of individuals and families nationwide pay off credit card balances and unsecured debt through credit card relief programs and credit card debt solutions. Our debt management plans provide a kind of personal debt consolidation strategy for help getting out of credit card debt, and we offer a wide variety of financial education services to consumers who need help getting out of debt and managing their finances more effectively.
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There are four other popular options that you could discuss with your creditors. The first is to have your interest rates reduced. If you have high interest debts of, say, 15% or higher and could get them reduced to maybe 12%, you would end up with much lower monthly payments, which could make it possible for you to meet your obligations. A second option worth discussing would be a timeout period of two or three months during which you would no longer be required to make any payments. This would give you time to get your finances reorganized and to save money that might allow you to catch up on your payments. A third possibility would be to have some or all of your credit card debts converted into repayment programs. You would likely be required to give up your credit cards but in turn you would have fixed payments for a fixed amount of time after which you would be completely debt-free.
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As a debt junkie for almost ten years, I ran up credit card after credit card living like my salary was about four times its actual size. Stupid things I bought on credit included flying lessons, weekends in Las Vegas, and a brand new pickup truck. Hey, I never said I wasn’t having fun. (Remember, I’m on the other side of 25 now, so I started college pre-recession… during the dot-com boom. Back then, I actually thought I could graduate with a sociology major and find a $75k a year job—because I knew people who did!)
Yes, but this is a real commitment of time and resources. Here is how it works. List all your debts (except your mortgage) from smallest to largest. Pay the minimum due on all debts, but the smallest. Attack the smallest debt with as much money as you have available — $100 a month, for example – until it is paid off.  When that is paid off, take the $100 a month, plus whatever the minimum you were paying on the second smallest debt, combine them and go after the second debt. Keep repeating until you have gone through each debt. The idea is to gain momentum in your bill paying by having success.
If you struggle with learning how to develop a good budget so you can get your debts paid on time each month, you may consider using a credit counselor to get back on track. Consumer credit counseling agencies are nonprofits that will help you find a workable solution to financial problems. However, some nonprofit credit agencies charge excessive fees that are not applied to debt reduction.
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.
Debt consolidation loans are a well-known, well-advertised option for consumers who struggle with debt. These credit facilities exist for the express purpose of paying off outstanding unsecured debts and do their job quite well. When you take out a debt consolidation loan, your lender immediately pays off your existing creditors and starts billing you for the balance.
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.
Most debt management plans have participants send a monthly payment to the credit counseling agency. The agency then distributes it to creditors. They also negotiate lower interest rates, and may be able to have fees waived and can help reduce or eliminate the number of collection calls a person receives. Keep in mind, most plans take 36 to 60 months to complete. Credit counseling agencies may also help consumers review credit reports and dispute errors.
Such a scam, they make you believe they’re helping you but in reality they are ripping you off. They are charging you for something you can do on your own. There is nothing special about this company, please don’t waste your time and money. Wish someone told me this before I signed up. I never write reviews but I feel so strongly about this that I had to try to stop someone else from making the same mistake and sign up with National Debt Relief.
You see, when you consolidate your debts or work with a debt settlement company, you’ll only treat the symptoms of your money problems and never get to the root of why you have issues in the first place. You don’t need to consolidate your bills—you need to delete them. To do that, you have to change the way you view debt! Even though your choices landed you in a pile of debt, you have the power to work your way out! You just need the right plan. 
In some cases, credit card companies allow you to use balance-transfer checks. Essentially, you'll be able to deposit money in your bank account and get the special promotional balance transfer rate of 0% interest for a designated time. If you take advantage of this offer, you'd still pay whatever fee the card imposes for balance transfers, if any. This approach allows you to use a balance transfer to refinance even non-credit card debt to the 0% promotional rate. Just be careful not to confuse balance-transfer checks with a cash advance, which involves having your credit card lend you cash at a very high interest rate. 
InCharge is the only national credit counseling service that offers online counseling: enter your income, assets and debts and you’ll receive a personalized debt relief solution – all without having to talk to a person. Other reasons to choose InCharge for consumer credit counseling services: A+ rating from the BBB and we are certified by the NFCC.
Instead of diving into debt settlement, a better option might be to talk to a nonprofit credit counselor. Credit counseling organizations can help you better understand tactics for managing and reducing your debt, including creating and following a budget. Credit counseling may not have the negative impact of debt settlement (though if you choose a Debt Management Plan, it could appear on your credit report).
There are many ways to get out of credit card as well as medical debt or to get help with loans. Find a list of solutions below. You can consolidate it, enter into debt reduction or credit card hardship programs, reduce the interest rates on any loans or even completely eliminate it. Most lenders are willing to offer some form of assistance to borrowers, and non-profit agencies can also assist. Various options, including some that are free, are available to help consumers reduce the amount of debt that they have.

Getting out of debt goes beyond making monthly payments, it takes discipline and self-control to avoid taking on new debt. Stop using a credit card to fund your lifestyle. Make a conscious decision to stop borrowing money, whether it be from a credit line or credit cards. By putting a stop to borrowing money you don’t have, you can focus solely on your existing debt and avoid any new debt from forming.


Want more examples? I like public speaking. I like good pizza more than probably anyone should. And I volunteered to be interviewed in a national magazine about my experience with living with and recovering from social anxiety, a mental health disorder I used to have. I’ve made many many mistakes, and will likely make many more. Those just aren’t any of them.
Negative reviews: Common complaints include unprofessional behavior, being passed off between employees and being treated great during enrollment then the quality dropping once the process actually starts. The company provides an online dashboard to help clients keep track of their debt management program, but customers have still said they feel disconnected from the debt settlement process. Average user score is 2.4/10.
InCharge does not report your participation in a debt management program or plan to the credit bureaus, however your creditors might. Your credit score may decrease when your credit cards are closed and then increase as you make consistent on-time payments over the course of the program. Every person’s credit situation is different. In order to better understand how a debt management program may affect your credit score, learn more about how credit scores are calculated.
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