2 years ago my husband & I cut up all of our credit cards and contacted each Credit Card company to come up with a reasonable monthly pay plan and close out the account. We have been doing this fine ever since as it comes directly out of our checking account. However, we have recently come into enough money to settle all of our debt for probably 50%-75% of the amount originally owed. Because we are already in “payment mode” with these companies, it cannot hurt our credit anymore to go with a settlement offer, correct? Our goal is to pay off as many as possible with the money we have.

This won’t be an option for everyone but if you’re paid hourly, speak to your boss and see if you can pick up a few extra hours. Or if you’re job has shifted, check if the less desirable shifts pay a bit more per hour. Working nights isn’t fun, but it could make you some extra money without doing any more work. Maybe less if there’s no one watching!
You'd make the minimum payments on all debts, and pay as much extra as possible toward the $1,000 credit card balance. Once that was paid off, the new "minimum" payment for the card with the $3,000 balance would be $400 (the original $300 minimum plus the $100 minimum you used to make on the card you paid off). Extra cash would also go to repay that card. Finally, once both of those were paid off, you'd focus all your attention on the personal loan. The new "minimum" payment would be $650 ($300 + $250 + $100). 

Understand the basics of good credit counseling. Many nonprofit credit counseling agencies offer both free and paid services, Kalkowski says. They may offer complimentary consultations, financial literacy workshops or even one-on-one budgeting sessions free of charge. However, if you sign up for a debt management plan, expect to pay for the service. Debt management plans through nonprofits often have a startup fee of $30 to $40 and monthly fees of $20 to $40.
“The first thing a person needs to do is take a close look at how they got into debt in the first place,” advised Carolyn McClanahan, M.D., CFP, who began her career as a physician and is now founder of a financial planning group called Life Planning Partners LLC, based in Jacksonville, Fla. “They should identify what triggered the situation or any bad habits that might have led to their debt, so that they don’t repeat those things going forward. Then, they need to make an actionable plan to figure out how to get out of debt.”
Being deep in debt is a very stressful situation – especially if what you owe is more than what you are earning every month. Any breadwinner in the family feels this burden day in and day out. The pressure to make sure that the family is provided for is frustrating. While paying for the usual bills, you need to make sure your debts are paid on time and correctly. Not to mention having extra money to put aside so you will have emergency money for unexpected situations.

If you are working with a credit counselor and think you’ll miss a payment, they can take proactive steps to mitigate consequences and create a plan to get you back on track. They can even negotiate to have additional late payments or late fees reduced or waived if you miss a payment. The key to making this work is being completely open and honest about your situation and speaking with your credit counselor as soon as you realize your payment will be late.


Ask for help from your friends, relatives, coworkers, and acquaintances. I don’t mean ask people to pay your debts for you. I mean ask for help with transportation, child care, manual labor, tips, recipes, and ideas. Ask to borrow tools. Ask handy people to show you how to do things to save money. Google stuff. Just because you don’t know how to do something now or have never done it before doesn’t mean you can’t do it.
Revolving (credit card) debt can have a great impact on credit scores as it will increase your balance-to-limit ratio and lower the amount of available credit that you have. The higher your revolving balances inch up to the limits, the more it hurts the credit scores. Depending on the situation and your credit scores, a bankruptcy, debt consolidation plan, or a setup of a budget and timeframe for getting out of debt could be options. Once you’re ankle-deep in revolving debt, it can be tricky to dig yourself out so getting professional advice is important.
I have a creditor that has reported my account as a charge off bad debt. Two years ago I had made an agreement with the creditors third party collection agency to pay the bad debt on a monthly basis. I have paid each month on time to the creditor, but they have not reported this, and now my credit score is sinking because of this. Is this right? I have made my payments on time and they refuse to have this changed. I had requested the creditor to please change the repoting, but they have refused. Is this right? By law are they able to do this?
In 2015 we finished our lease prematurely, we got all our deposit back and 300 bucks extra (we were in a very desirable but cheap location) and then we lived with brothers and parents. In this time I made a 4000 lump payment to my wife’s highest interest loan and increase by 50 bucks the monthly amount that goes against it. We owe just a bit over 2K on that account. She has another 11-13K in student loans.

The big downside is, if you need to leave your job for any reason, including if you're terminated, you must pay back the 401(k) loan quickly -- often within 60 days. If you don't, the unpaid loan is treated as a taxable distribution and you'd have to pay a 10% penalty. Not only can a 401(k) loan trap you in your job, but you could also hurt your retirement savings goals, because you'll have less money invested and growing. 
Note: Federal regulations require credit card issuers to disclose on your credit card statement how long it will take to pay off your estimated balance if you make minimum monthly payments. Estimates may be rounded up to the next $100. This debt calculator uses your actual credit card balance, so the results may vary from the estimate shown in your credit card statement.

Even better, when you refinance to a lower-rate loan, it lowers your monthly payment. You could continue to pay the higher payments you were making before the refinance to get debt paid off on an accelerated timeline. That $10,000 at 18% over seven years would have monthly payments of around $210 monthly. If you refinanced to a 9% loan with a seven-year repayment period, the required payment would drop to $161. But if you kept paying the $210 you were paying before, you could repay the loan in just five years and pay only $2,418 in interest. You'd make payments for two years less and save yourself $5,252 in interest. 
Although a debt settlement company may be able to settle one or more of your debts, these programs can be very risky and have serious negative financial consequences for consumers. Additionally, some debt settlement companies deceive consumers by making promises they do not keep and engaging in other illegal conduct (like charging fees before obtaining any settlements, in violation of the TSR). For information, read Coping with Debt and Settling Credit Card Debts.
Lower interest rates and monthly payments. A debt consolidation loan or debt management program should reduce the amount of interest you pay on your debt, plus get you a monthly payment that is more in line with your income. The stability of knowing that you have an affordable monthly payment that eventually will eliminate your debt can remove a lot of the anxiety associated with the problem.
A lot of young people borrow more money than they can realisticly pay back. I have a son in college, who recently turned 20. I moniter every penny he borrows becuase when he does receive his undergraduate in the next two years, he will have less $5000 in student loan debt. Is your daughter attending a traditional university or college or is she going to an online college. I hope she has not chose the online route because those colleges tend to be more expensive. If she has federal student loans not private student loan. She can take out a hardship forebearance or deferment. In both scenerios, she can postpone payment until her finaces are more stable.
A Personal Loan can offer funds relatively quickly once you qualify you could have your funds within a few days to a week. A loan can be fixed for a term and rate or variable with fluctuating amount due and rate assessed, be sure to speak with your loan officer about the actual term and rate you may qualify for based on your credit history and ability to repay the loan. A personal loan can assist in paying off high-interest rate balances with one fixed term payment, so it is important that you try to obtain a fixed term and rate if your goal is to reduce your debt. Some lenders may require that you have an account with them already and for a prescribed period of time in order to qualify for better rates on their personal loan products. Lenders may charge an origination fee generally around 1% of the amount sought. Be sure to ask about all fees, costs and terms associated with each loan product. Loan amounts of $1,000 up to $50,000 are available through participating lenders; however, your state, credit history, credit score, personal financial situation, and lender underwriting criteria can impact the amount, fees, terms and rates offered. Ask your loan officer for details.
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.
Many have heard of the tremendous benefits of compounding interest regarding investments before. However, when related to debt, compounding interest works against you as interest builds upon growing outstanding balances. This means that the longer you hold higher-interest debt, the harder it is for you to get out of debt. A higher-interest debt will cost you much more over time and should be your highest priority in paying off. Typically, credit card debts and personal or small business loans will have the highest interest rates.
I’ve only been in the program a few weeks. I’m rather disappointed with their csr. At first they treat you like you’re golden and give the impression that they actually care. Once I signed up I tried reaching out to the lady who originally helped me,she completely ignored me and has not replied to any of my emails. It just feels awful being tossed to the side like garbage after initially being treat with attention and support.
Find a good credit counselor. Almost all DMPs are administered by consumer credit counseling agencies--so much so, in fact, that the terms "credit counseling" and "debt management" are often used interchangeably. Thoroughly researching the agency is the most important thing to do before deciding to enroll in their debt management program. The FTC has put together a simple guide to help you get started and choose the right plan.

It depends on how much debt you have and how successful National Debt Relief is in negotiating with your creditors. However, there are quite a few examples of how much past customers have saved in reviews on the Better Business Bureau (BBB) website. One customer claimed enrolling in the program helped them cut down their payments by almost 70%, while another said they were able to shave two years and $3,000 off their debt repayments.
Find free, simple steps to take in order eliminate credit card debt and to save money on all of your monthly bills. Experts offer free, do it yourself advice and simple steps that you can take yourself to eliminate credit card debt. The goal of these methods is to help you become debt free in a fairly short time frame. While there is no easy button to press, taking some small steps now can put you on the right path. Many are tried and true. There are steps to follow to eliminate credit card debt, as it does take time.
If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan (DMP). A DMP alone is not credit counseling, and DMPs are not for everyone. Don’t sign up for one of these plans unless and until a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money. Even if a DMP is appropriate for you, a reputable credit counseling organization still can help you create a budget and teach you money management skills.
While the steps above may seem lengthy and cumbersome, debt management plans exist because some consumers are simply unable to get out of debt on their own. Bruce McClary, vice president of communications for the National Foundation for Credit Counseling (NFCC), said that an array of circumstances can lead to situations where families need outside help. Job loss, chronic overspending, reduction in work hours, loss of income and unexpected major expenses are often the biggest culprits when consumers spiral into debt they cannot control.
The National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies lists affiliated legitimate credit counseling services across the United States. Also, consumers can check with their state's attorney general’s office and the local consumer protection agency to determine if consumers have filed complaints about a credit counseling organization. As another resource, the United States Trustee Program keeps a list of credit counseling agencies approved to provide pre-bankruptcy counseling. Bankruptcy law mandates that anyone filing for bankruptcy must first undergo credit counseling.

Not all consumers are able to complete debt relief programs for various reasons, including their ability to save sufficient funds. The use of debt resolution services could negatively impact your credit and may result in legal action on the part of creditors or collectors for unpaid balances. Consumers enrolled in debt consolidation programs who fail to adhere to the terms of their debt management plan (DMP) may forfeit the benefits of debt relief and revert to the terms of their original creditor agreements. Read and understand all program materials prior to enrollment. Please contact a debt relief specialist for complete program details.
Depending on how serious are your financial woes your counselor may recommend a debt management plan (DMP). The way this would work in brief is your counselor will determine how much you can pay and then negotiate with the creditors on your behalf. The negotiation can be for longer terms or lower monthly amounts determined by what payments you could afford to make. In some cases your counselor may attempt to negotiate a reduction in your interest rates. If all or most all your creditors agree to your debt management plan you would stop paying them. Instead, you would send one payment a month to the credit-counseling agency and it will distribute the money to your creditors per your DMP. The biggest downside to one of these plans is that they typically take five years to complete. You would most likely be required to give up all the credit cards that are in your plan and would be strongly urged to not take on any new credit until you’ve completed your plan. These are the biggest reasons why nearly half of those debtors who sign up for DMP never successfully complete it.

They make you think they are helping and word it as such. its only after I had “qualified for a loan” with another company to pay off my debt that I was informed of the fees and debts still in collection and no settlement was ever made. I have been paying for over a year and half of each payment went to fees for the “services” they provide.All these services they offer you can do yourself with just 30 minutes of your own time.


Put extra money toward the credit card or debt with the smallest balance. You'll be able to pay it off quickly, reducing the total number of accounts you have to deal with, and giving yourself the mental boost of successfully eliminating part of your debt (though you'll pay more interest in the long run than if you were to pay off debt with the highest interest rate first.)

A debt collector generally is a person or company that regularly collects debts owed to others, usually when those debts are past-due. This includes collection agencies, lawyers who collect debts as part of their business, and companies that buy delinquent debts and then try to collect them. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.
For example, let’s say Credit Card A has a balance of $1,000 and a 12% interest rate, and Credit Card B has $1,500 at 6% interest. You put down $150 total every month, paying the minimum payment (3%) on one and whatever’s left on the other. You’re going to save more money by eliminating Credit Card A first ($147 in total interest) vs Card B ($188).
The big downside is, if you need to leave your job for any reason, including if you're terminated, you must pay back the 401(k) loan quickly -- often within 60 days. If you don't, the unpaid loan is treated as a taxable distribution and you'd have to pay a 10% penalty. Not only can a 401(k) loan trap you in your job, but you could also hurt your retirement savings goals, because you'll have less money invested and growing. 
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2 years ago my husband & I cut up all of our credit cards and contacted each Credit Card company to come up with a reasonable monthly pay plan and close out the account. We have been doing this fine ever since as it comes directly out of our checking account. However, we have recently come into enough money to settle all of our debt for probably 50%-75% of the amount originally owed. Because we are already in “payment mode” with these companies, it cannot hurt our credit anymore to go with a settlement offer, correct? Our goal is to pay off as many as possible with the money we have.
One of America's leading nonprofit debt consolidation companies, American Consumer Credit Counseling (ACCC) provides credit consulting services and debt management solutions to consumers who are struggling with credit card bills and other types of unsecured debt. Unlike some debt relief companies, we can help you consolidate your credit without having to take a credit consolidation loan. If you're wondering how to consolidate debt in the more prudent, effective way, contact us for a free consultation with one of ACCC's consolidation counselors. Be sure to check out our debt consolidation reviews to hear from our customers what makes ACCC such a trusted and effective debt consolidation company.
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