“There are hundreds of companies that claim to offer consumers ways to erase bad credit, create a new credit identity, or even remove bankruptcies, judgments or liens from credit files. Many of these services are outright scams and should be avoided,” says Mike Long, executive vice president and chief credit officer at UW Credit Union in Wisconsin.
The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.
Whenever you are dealing with a company that deals with debt or even money, people tend to have strong opinions. When you are dealing with risky procedures like debt settlement and bankruptcy, those opinions get even stronger. Generally, National Debt Relief reviews are good among debt relief services and it is one of the most trusted of the debt relief program services out there. On the flip side, there are a lot of people out there who feel scammed by National Debt Relief. Part of that is people who didn’t understand the risks involved. Part of it is people who didn’t get the results they were looking for. And part of it is probably National Debt Relief’s fault.
After that first initial call with him I was contacted by a company called Clear One Advantage they were very pleasant in the beginning took all of my information and began debiting my account on a monthly basis in July of 2017 by September of 2017 not one of the accounts have been settled my phone was ringing off the hook my creditors emailing me as well, telling me that they’re willing to work with me, I just needed to contact them and they would see what they could do.
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.

Many banks and credit card issuers, such as Bank of America, HSBC, Wells Fargo, and Capital One offer consumers their own debt management plans (DMP) as part of the Call to Action. This is a government supported debt assistance program that will reduce interest rates, eliminate fees, and help in other ways. It often involves some form of payment plan as well. Continue.


“There are hundreds of companies that claim to offer consumers ways to erase bad credit, create a new credit identity, or even remove bankruptcies, judgments or liens from credit files. Many of these services are outright scams and should be avoided,” says Mike Long, executive vice president and chief credit officer at UW Credit Union in Wisconsin.
Bankruptcy is not the credit catastrophe it once was. Certainly filing bankruptcy does not improve your credit and your credit score will suffer if you file. However, you can rebuild your credit within a few years by charging small amounts on a credit card and paying the bill on time every month. Taking out a personal or auto loan (not payday loans) can help improve your score quickly as well if you pay your bill on time every month. After a few years of doing this, your credit score should be in the 700 range. Post bankruptcy, you can thrive and not merely survive if you are diligent about getting back on the road to financial recovery.

This can be especially helpful for someone with serious debt (generally $7,500 or more), who is struggling to make minimum payments and who have suffered a financial hardship, such as job loss, medical expense and divorce. Regulated by the Federal Trade Commission, debt settlement companies work on a consumer’s behalf to lower the principal balances owed. It usually takes two to five years and is best for those who would otherwise need to consider bankruptcy. Check the American Fair Credit Council for reputable providers.
Tax man awaits. If you have debt forgiven, that probably will count as taxable income and should be reported on your federal income taxes. The lender who forgives the debt should send you a 1099-C tax form detailing how much the original debt was and how much was forgiven. For example, if you owed $25,000 and had $10,000 forgiven, you would have to claim the $10,000 as income on your taxes.
But with the help of her credit counselor, she worked out a plan that got her out of debt in just 3 years. When she saw her credit card balances going down, she knew she made the right decision. With the money she’s saving, she plans to make a great down payment for a brand new car. And she looks forward to not stressing about how she’ll be able to afford the payments.
Before discussing anything else, we’d like you to know that you have the option to fix everything yourself. Unfortunately success is not guaranteed as you have proven that you haven’t been able to manage your finances. But it could be worth a try. The good thing is that you will not be burdened with the additional costs of hiring someone to help you out. You will be able to concentrate all your funds on paying off your debts.

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.


Debt among U.S. consumers is escalating at a dangerous pace, putting younger generations at a financial risk that was never experienced by their parents. It usually starts with irresponsible use of credit cards and grows worse as unforeseen circumstances like  unemployment, medical emergencies or unforeseen changes in a family situation come into the picture.
Also, there are many not for profit credit counseling organizations who offer services at local offices, online, and on the phone. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Local financial institutions and consumer protection agencies may also be good sources of information and referrals.
In fact, certain aspects of a debt management plan will have a positive impact on your credit score. These aspects are the amounts owed, payment history, and inquiries for new credit.  Your payment history, which makes up 35% of the FICO credit score, will have a positive impact assuming your payments are made every month. In terms of amounts owed, which makes up  30% of the Fico score, this aspect will be positively impacted as the accounts are paid down.
×