When faced with too much credit card and other unsecured debts, you really have only a few options. 

Here's some tips how to determine your best option?

I'm talking about credit card debt as well as other unsecured debts such as:

• Personal loans
• Private student loans
• Store cards
• Medical bills
• Repossessions

Next to a very large consolidation loan (personal or home equity type), borrowing money from family and friends, withdrawing money from your 401(K) or other retirement plans, you really only have 3 basic options.

• Debt Management (or in some cases using a Snowball Debt Reduction Plan)
• Debt Settlement
• Bankruptcy

Notice I didn't mention using the creditor's offer of a Hardship Plan as this is only a temporary, short term fix, that only delays the inevitable repayment of the debt!

And also notice that I didn't mention the so called "Pay-Day" loans.  Stay clear of those at all costs!!!

Do you qualify for a Debt Management Program?

If you are only able to make the minimum payments required of all of your credit cards and other unsecured debts, you should know by now that it may take you many years (anywhere from 10-15, depending on which article your read) and 3-4 times the original amount borrowed to repay those debts!

If you enroll in a Debt Management Program (formerly and sometimes still referred to as a Credit Counseling Program), here's what usually happens:

The Debt Management Company will contact each of your creditors.  Most of the hundreds upon hundreds of creditors usually have an agreement with Debt Management Companies to:

• Lower or eliminate interest rates
• Forgive or reduce late or over-the-limit fees
• Re-Age your account (make it look like it you are not behind on payments)

You will make ONE MONTHLY PAYMENT to the Debt Management Company.  Although some of the Ads you see or hear seem to say that they can reduce your monthly payment, that is not usually the case.

Credit card companies figured out many years ago that they could make more money by NOT HAVING THE CONSUMER PAY OFF THE CARDS!  That's right, the credit card industry actually makes more profit from late fees, over-limit-fees, annual fees and low minimum monthly payment requirements, than they do on the high interest rates they charge.

For some shocking insight into what credit cards companies are doing, click here.

I don't want to get lost in the various calculation methods the credit card companies use to calculate the minimum monthly payment, but most credit card companies only charge 2% of the balance/12.

In most Debt Management Programs, the total or single monthly payment you will be required to make is about 2.7%.  This includes the payment to the Debt Management Company.  Did you really think they worked for free because they are incorporated as a "non-profit"?

Example:  Let's say you have a total of $20,000 of credit card debt.  (BTW...the average consumer has 8 cards with an average total balance of $9,000!)

$20,000 x 2% = $400 minimum monthly payment required now

In a Debt Management Program, $20,000 x 2.7% = $540 per month or $140 more!!!

If you are barely making the minimum payments now, how can you increase it by $140?

But before I move on to the second option, if you could make increase your monthly payments each month, why not check out a SNOWBALL DEBT REDUCTION PLAN?

A Snowball Debt Reduction Plan is a great way to reduce your debts more quickly and avoid paying the cost to a Debt Management Company.

However, not everyone has the discipline to set up, monitor and track a Snowball Debt Reduction Plan.  If you're like this, maybe you could use a little help...

But what if you don't have any extra money at the end of the month?  In fact, you are not  making the minimum payments and some or all of your accounts are "past-due" or in collections?

Then you should consider a Debt Settlement Program.

Or, perhaps you have fallen behind because of:

• Small fixed retirement income
• Disability
• Unemployment
• Divorce
• Death of spouse or partner
• Too little income...too much debt!

A Debt Settlement Program may be just what you need!

• One monthly payment (customized to fit your existing budget)
• Most debts will eventually be settled for 50% or more
• Avoid seeking bankruptcy
• Become DEBT FREE in 36-48 months 

Want a complete overview?  Download our FREE BOOKLET:

What about Bankruptcy?

If your financial situation is such that you not only cannot afford extra payments required of a Debt Management Program, a Snowball Debt Reduction Plan or a Debt Settlement Program, then you need to consult an attorney about BANKRUPTCY.

There are differing opinions about bankruptcy, but regardless, if you have accumulated so much debt that realistically you will never be able to repay, you owe it to yourself to check out your bankruptcy options.

Other questions?  Let us help.

Are money issues plaguing your marital bliss? Well, you're definitely not alone. In fact, research shows that couples fight more about money than any other issue—including sex, jobs, children, and religion.

For a relationship to be healthy and sustainable, both people must be committed to working through money issues. If your marriage is going through a financial rough patch, don’t worry! With a little work and a lot of communication, you'll get through the tough times.

Here are 4 money management tips to get back on the road to a happy and stable relationship:

Tip #1: Hold Yourself Accountable

Let's face it—your spouse probably isn't the only one to blame for financial problems in your relationship. Many people have bad habits when it comes to managing and spending money.

So before confronting your spouse, take some time to carefully analyze your own money habits. See if there are ways you can improve and then jot down ideas about how to make positive changes. When you lead by example, you’ll inspire your spouse to improve their financial habits as well.

Tip #2: Don’t Play the Blame Game

Conversations about money with your partner can get feisty. However, don’t let anger or resentment get the best of you.

Shaming your partner will only embarrass, humiliate, or anger him/her—so be cautious when you talk about money. If you feel that your partner is too careless with money or doesn't include you in financial decisions enough, calmly express how it makes you feel.

Try using this formula: "Whenever you [insert money habit], it makes me feel [insert emotion]."

Explain your thoughts and feelings logically and ask your partner if they'd be willing to work as a team to improve. Keeping any anger and resentment out of a money conversation will make it much more positive and productive!

Tip #3: Make Plans for your Future

One of the most unique ways to improve your relationship as a couple is to start planning for a successful financial future that you will enjoy together. Perhaps you want to save for a home, car, vacation, or early retirement.

Whatever the two of you envision for your future, start making decisions about how you'll reach those goals. Come up with a plan that you can stick to. Many of your financial goals will be long-term, so make sure to have little celebrations every few months to acknowledge your progress.

Tip #4: Talk about Spending Ahead of Time

Since you and your spouse probably won't be together every time you buy something, it's important to talk about big purchases ahead of time. The discussion could be as simple as making a phone call while you're shopping and asking, "Are you ok with me getting these shoes?"

It might seem a little overboard and juvenile, but trust me, considering your partner’s thoughts and feelings will pay off in the long run!

Money isn't always easy to talk about, but that doesn’t mean it has to wreak havoc in your relationship. Use these 4 tips to improve your finances as a couple and make your relationship stronger.

If you have too much debt and not enough income to service the minimum payments, it is time to take action before bankruptcy is your only option.

Here are 3 tips that will help you find debt relief

#1 Take a close look at your finances

You need to find out exactly where you are in your finances. In other words, you must know how much you have coming in each month and how much must go out.  One of the best things you can do is to sit down and complete a BASIC BUDGET.

BE HONEST WITH YOURSELF!

NET INCOME means this is what you have left to spend after mandatory state and federal taxes are taken out of your paycheck. If you are self employed...don't kid yourself...you are going to have to PAY UP, so deduct those taxes (including payroll if you have employees).

#2  Evaluate your debt

How much unsecured debt (credit cards, store cards, personal lines of credit, medical bills, etc.) do you have and more important, how much is the minimum payment required to meet all of them?

If you must have $500 a month just to cover the minimum payments required, and you honestly only have $350 a month after all mandatory expenses, YOU'VE ONLY GOT A COUPLE OF CHOICES.

#3  Review Your Options with an Experienced Counselor!

Don't give up and just seek bankruptcy.  Bankruptcy may end up being the best choice for you, but before you jump in, make sure you know all of your options!

• A DEBT MANAGEMENT PROGRAM

• A DEBT SETTLEMENT PROGRAM

In order to determine which program is best for you, you will need to spend a few minutes with an experienced counselor.  This service is FREE and you are under NO OBLIGATION.

Choosing to enroll in a Debt Settlement program with Debt Relief NW or any other company can be a tough decision.  Every day we get asked some of the same questions over and over again about the Debt Settlement program. 

Below I have answered the top 5 most common Debt Settlement question to help you in making this important and life changing decision.

When will Debt Relief start negotiating my debts?

Once you have enrolled in the program, your creditors will be notified, and the process will begin. Your debts will be resolved as funds become available through your savings plan.

Will my creditors continue to contact me?

The original creditor retains the right to contact you, until such time as the debt has been transferred to a 3rd party for collection efforts. Because you may still receive phone calls from the creditors, we will provide you with the tools you need to handle those calls. Your creditors can also contact you by mail. If you have questions regarding any correspondence you receive, you should immediately contact your Solutions Specialist. They will handle all of your creditors and collectors on your behalf.

Do all of my creditors have to be included in the Debt Settlement program?

No. We will handle only those debts that you want to include in the program. Many people retain one credit account for emergency use. Discuss your situation with your Solutions Specialist.

How long will my Debt Settlement program last?

This depends upon the amount you can save monthly and how much debt you are have. At Debt Relief, we offer programs that can fit within any budget and can eliminate your debt in as little as 18 months. However, we will work with you to create a program that specifically address your needs and objectives.

Will I be able to get credit in the future?

Yes. When you have successfully finished the program, the debt you placed in our program will have a zero balance. Good cash flow and the ability to pay are what lenders look for. Clients are able to purchase homes, refinance and obtain credit cards, and re-establish their good credit rating.

Only you can know what is the best decision for you and your family.  However, our Debt Solutions Specialist are here to answer all of your questions and help you decide if Debt Settlement is your best option or if there is another program that would work better for you. 

Please submit your questions in the comments section below or simply give us a call!

1-877-492-4109