QUESTION- My credit is horrible. I have a Read more on What kind of credit do I need to consolidate med and cc debt?…

That depends…Your options for debt reduction varies depending on your situation. If you have significant equity in your home, you may be able to refinance and pay off your credit card debts avoiding the debt reduction negotiation process altogether. However, that is not really true debt reduction since you are just transfering the debt balance from one source to another (your home mortgage). Regardless, it is the preferred method due to the fact that your credit score will remain basically unharmed and you will be trading high interest rate debt with low interest rate debt, thereby lowering your overall monthly payments.

Read more on How Long Does a Debt Reduction Negotiation Process Take to Be Debt Free?…

Every situation is different but using equity that you’ve accumulated in your home as it has appreciated in value over your mortgage balance is probably the simplest and most attractive way to consolidate credit card debt.

Read more on Should I Consolidate Credit Card Debt Using A Home Equity Loan?…

When weighing the choice of debt settlement vs. bankrutcy, you need to consider the law. Debt settlement has become even more attractive as an alternative to bankruptcy due to the new bankruptcy laws which make it much harder to file and wipe out your debts. The process used to be much quicker and simpler leading many people to file bankruptcy and start over instead of working off the debt through debt settlement or debt management consolidation services.

Read more on What Are the Benefits of Debt Settlement vs. Bankruptcy?…

So lets say you’ve made the decision to settle your debt in order to get out of debt as quickly as possible without filing for bankruptcy. How long will it take to be debt free? Of course the timeline for a debt settlement plan depends on several factors regarding your personal situation:

Read more on If I Use a Debt Settlement Company to Settle Debt, When Will I Be Debt Free?…

Debt management services and credit counseling are basically two terms to describe the same service and that service is helping a consumer consolidate their unsecured (mostly credit card) debt into one payment typically with reduced interest rates and fees. Technically, an industry insider will say that credit counseling companies provide a broader range of services that just debt management, however, at their core, their primary service is offering debt management programs. Most TV and radio ads talk about credit counseling, I prefer to use the term debt management because I think it defines the service they provide more accurately.

Read more on What Is the Difference Between Credit Counseling & Debt Management Services?…

The answer depends on what services they provide you with. Non profit credit counseling companies do offer free debt advice but they get paid when they enroll you into a debt management plan. So essentially, one of the services that non profit credit counseling companies provide is debt management plans for consumers with mounting debt problems. These plans help thousands of people every week consolidate debt into a single payment, lower interest rates, reduce their stress, and help them become educated on important family financial budgeting matters.

Read more on Non Profit Credit Counseling – Is It Free?…

Credit card companies are in the business of loaning money that they need paid back. They allow you to get something now and pay for it later, esentially it is a short term (usually=) loan so why would they enter into a credit negotiation to reduce the debt?

Read more on Credit Negotiation- Why Will Credit Card Companies Reduce My Debt?…

Great question! After all, if you are in debt, you do not have a lot to spend, right? Debt settlement help costs vary by company but in general, they take a percentage based on the amount of debt you have entered into their program. The average settlement fee is typically 15% of your debt amount.

Read more on How Much Does Debt Settlement Help Cost?…

Bankruptcy is really a last resort. You want to avoid filing bankruptcy as much as possible especially now that the new bankruptcy laws have made it so much harder to file and wipe your debt slate clean quickly.

Read more on How Do I Avoid Filing Bankruptcy?…

This is a common question and the words “non profit” cause a lot of confusion. Good non profit consumer debt services will be able to help you consolidate your debts into 1 monthly payment with lower fees and interest rates through their debt management plans. In addition, they should also provide you with family budgeting advice and ongoing financial counseling as you become debt free.

Read more on What Types of Help Do Non-Profit Consumer Debt Services Provide?…

You see the TV ads and listen to the spots on the radio all talking about non profit debt services? Sounds great but what are they? Often they are more commonly refered to as credit counseling companies which means they provide a variety of debt solutions based on your situation and needs – debt management being only one of them.

Read more on What Are Non Profit Debt Services?…

There are several debt help relief solutions available to consumers. What’s best for you depends on your own financial situation.

• Do you have a home that’s worth more than you owe?

Read more on What Consumer Debt Relief Solutions Are Available?…

If you are deep in debt and need an alternative to bankruptcy, you may decide to settle your debt to benefit from the lower payments and the debt reduction process the service provides. What steps are involved?

Read more on How to Settle Debt Using a Professional Debt Settlement Company?…

What is debt settlement (also often called debt negotiation and debt reduction)? It is the legal process of getting your creditors to accept less money than you owe them for your unsecured debts most commonly credit cards, medical bills, large utility bills, and unsecured personal loans. Settlement of debt is very common and has become more so as the amount of consumer debt has increased over the past few years, particularly with credit cards.

Read more on What is Settlement of Debt and How Does It Work?…

The best way to reduce debts like credit cards if you cannot find a way to pay it off by effective budgeting and sound financial discipline is to use a debt settlement company who has established relationships with all the major creditors (credit card companies, department store charge card companies, etc). They work with people who find themselves over their head and need a reduction in debt to get back on their feet. The process involves a negotiation between the debt settlement company (on your behalf) and your creditors.

Read more on How Can I Achieve a Reduction of Debt I Owe?…

If you read this article about unsecured debt you will understand that credit cards are promises to repay with nothing to back them up (like a physical asset or other collateral). Because of this, they can be negotiated (like any other promise or contract) should the borrower have trouble living up to thier obligations.

Read more on How Debt Settlement Reduces Unsecured Credit Card Debt…

In general credit consolidation counseling companies provide consumers with family financial educational information and debt management services. For all intensive purposes as far as the solutions they can provide you, consider the terms credit counseling and debt management to mean same thing since the basic service you get is the same whether you work with a company that calls itself a credit counselor or one that describes itself as a debt management company.

Read more on What is Credit Consolidation Counseling?…

Credit card companies charge you so much on personal credit card debt because it is unsecured as explained here. The fact that they only have your word and a “fine print” agreement that nobody reads that states you will pay back what you owe allows them to charge very high interest rates and often exorbitant fees. It’s how they make so much profit!

Read more on Why Are Personal Credit Card Debt Rates and Fees So High?…

Credit card debt is unsecured debt because nothing you own is used as collateral against that debt. In other words, your creditors do not have the ability to take anything from you if you are unable to repay that debt.

Read more on What Is Unsecured Credit Card Debt?…