Debt Management

These days, millions of Americans like you are likely feeling the effects of a tight economy and are struggling to pay off their unpaid bills. Maybe you were laid off from a job, faced an unexpected financial emergency, or paid off a huge medical bill-regardless of how you found yourself deep in debt, don't be discouraged. We can provide you a wealth of expert information on a variety of debt management services and programs that may help you get a better grip on your finances, create a budgeting plan, and take the first steps towards becoming debt-free.

See how debt relief can help you. Answer a few, simple questions to get a free debt relief estimate and savings analysis - at no cost to you.

One of the first steps you can take is to learn some of the most widely used debt relief services available. For some people, the solution may come in the form of a debt management plan (DMP), which is typically offered by credit counseling agencies and debt management companies. Under a debt management plan or program, your unsecured debts will typically be consolidated into one monthly payment that will be made to a credit counseling agency.

When you find a reputable credit counseling agency to work with, you will work with a credit counselor who will make proposals on your behalf-proposals like getting a lower interest rate, or eliminating late fees and penalties-to your creditors who, once they understand your financial situation, will most likely agree to a repayment plan that is more affordable for you. We can provide you more information about signing up for a debt management program, and the potentially money-saving benefits it can offer.

A debt management program is not a one-size-fits-all approach, as you might have guessed. Another potential solution that can provide you with debt relief is to get a debt consolidation loan, which would allow you to combine all of your high interest debts into one lower interest rate loan. But, be aware of the potential risks of debt consolidation loans. While it is a proven solution for some people to pay off their debts and save money, there are some cases where people who take debt consolidation loans end up running high credit card debts all over again-which means they now have high interest credit cards plus a debt consolidation loan. Also, let's say you use your home to secure a loan; you now may have put your home at risk if you default on the terms of your loan.

If you are possibly considering debt consolidation loans or other debt relief services, we can give you more details about the companies and organizations that have specific programs in mind just for consumers like you.

Explore your debt relief options. Request a free debt relief estimate and savings analysis, at no obligation to you.

Debt Settlement

Another approach that some people to take to get debt relief is debt settlement, also known as debt negotiation. Under a debt settlement program, companies will typically agree to "forgive or settle" your debt for a much lesser amount than what you actually owed. Debt settlement companies typically advise their clients to stop paying their bills so they can instead, save up cash that then is then used to negotiate a one-time, agreed-upon payment (the settlement). A few words of caution though if you are considering debt settlement. First, consider how much the service may cost you and the time it might take for you to actually settle your debt. Many debt settlement services charge anywhere from 14% to 18% of the total value of the debt you want settled, while others charge a percentage of the debt savings-usually 25%--once you settle.

Some debt settlement services used to charge initial fees before they even begin to settle your debt. Ideally, they will help you negotiate your debts, and help you deal with collection agencies. But, be aware that some creditors, once they know that you are working with a debt settlement company, may even take legal action against you. Another thing to consider: debt settlement may have negative consequences on your credit. Despite all these risks, many consumers still seek the services of debt settlement companies because for them, it is still a better option than declaring personal bankruptcy-often used as a last resort because the credit consequences are often more far-reaching and long-lasting. We can provide you valuable information not only about debt settlement services, but also a host of other debt help solutions that are widely used today.

Now that you know about some of the most commonly used programs that provide debt relief, the next step is to choose the company or organization you want on your side as you go through the process of eliminating your unsecured debts. There are a number of reputable credit counseling agencies that can provide financial guidance and help you pay down your debts-many of them charging low fees for debt management plans and other services. Many of these agencies are members of the National Foundation of Credit Counseling (NFCC), the oldest network of non profit debt management companies committed to providing free and affordable services to debt-riddled consumers.

Many non profit credit counseling agencies offer free budget counseling, money management skills, and debt management plan services, while those that may charge fees (or request contributions) typically keep the rates low and affordable. While many non profit credit counseling agencies truly provide low-cost money management and debt relief services, keep in mind that not all of them do. There are some non profit debt management companies that may charge high fees, while others may use a "non profit" status as a marketing ploy and as a way of convincing consumers that their high fees are legitimate.

Compare Your Options

The bottom line is, don't let your guard down when making the crucial step of choosing which debt management company you would want on your side. Investigate a non profit debt management company as you would a for-profit agency to make sure it is credible, reputable, and do offer honest financial advice at very little cost to you.

Request a free debt relief analysis and savings estimate in minutes. Start by answering a few, simple questions here.

While having a live person such as a credit counselor help you with your debt relief options is great, sometimes using technology in conjunction with a debt management plan can do wonders for when you are trying to manage your finances. Today, there are scores of debt management software available that offer tools and other resources that are all designed to help you wipe out your credit card debts. Debt management software often includes a debt calculator, which can determine your debt ratio-a number that tells you how your monthly debt payments stack up to your monthly income.

According to a recent MSN Money article, a high debt ratio might indicate that your monthly expenses are becoming unmanageable. In some cases, debt calculator software may advise the consumer on which debt to pay first, based on the interest rate. Budgeting software is typically used in conjunction with a debt calculator because it allows you to see how much you really spend each month, and then see where you can cut back. A number of debt management software is available for download-some free of charge, while others may offer you a free trial first, and then charge a monthly fee.

Another type of software that works for some consumers is debt consolidation software, which can help you save on interest and get out of debt faster. In many cases, debt consolidation software provides an easy way to make just one monthly payment instead of many. Another possible option is debt settlement software, a tool that can guide you through the process of reducing your debt without having to pay a settlement service.

The growing demand for debt management software has spawned some well-known money experts like Dave Ramsey and Suze Orman to create their own money management software or packages. On his Web site, Dave Ramsey offers budgeting software with tools that can help consumers organize their monthly budget, calculate their expenses and see their debt reduction progress. Financial guru and TV show host Suze Orman offers similar money management tools on her Web site such as a debt eliminator, an expense tracker, a compound interest forecaster, and a host of other solutions that helps consumers like you manage your debts.

If you are serious about taking steps towards eliminating your credit card debt and learning better money management skills, a good debt management program may be an effective solution to help you wipe out your debts as quickly as possible. Once you find a reputable credit counseling agency to work with, the Better Business Bureau recommends you make regular, timely payments, and to always read your monthly statements to make sure that your creditors are getting paid based on the plan they have agreed to with your credit counselor. It also recommends that you contact the credit counselor responsible for your debt management plan if you are unable to make your scheduled payment, or if you discover that your creditors are not getting paid.

Debt Management Tips

No matter what type of debt management program you choose, it's always a good idea to do your research, investigate a company's fees and services, and ask about state licensing requirements. For many consumers, debt management offers a proven and legitimate way to get debt relief and get a fresh start towards financial health. If you are interested in debt management or any other type of debt relief services, we can provide you more information about your options and the services of qualified companies and organizations.

See how debt relief can help you. Answer a few, simple questions to get a free debt relief estimate and savings analysis - at no cost to you.