Consolidating your Debt

Right now, it is all too common for individuals to be in debt to the point that they need to enlist outside debt management help to be able to resolve their debts. Not only can the debt be overwhelming, but the stress of dealing with the problems associated with these debts can be debilitating. Along with all this, you have to try to come to a decision on how to manage your debt. Reliability is a big concern when it comes to letting someone else manage your money.

Credit counseling is one of the best ways to get debt management help, but if you are seriously past due (more than 3 months), it might not work for you. The monthly fee for credit counseling is $30-$50 and the one-time set up fee is normally not more than $50. This may sound expensive, but it you consider that most of your interest rates are going to go down to 10% or less, $30-$50 is a steal.

all the interaction with your lenders will be done by the credit counseling company. You will make one payment per month to them and the credit counseling service will disburse it to your lenders as required. Your interest rates will be reduced, your fees will be eliminated and your collection calls will stop. It is essential that you do not enter into an agreement that you cannot honor. You will still be required to a make a payment that is about 2% of your total credit card balances. This debt management help will take 3-7 years depending on your total debt.

Debt management help through a credit counseling service can be what you need if you feel you are becoming overwhelmed with debt. However, this is probably not going to work for you if you have are not able to make the 2% payment each month or if your debt is more than 3 months past due. Debt negotiation and bankruptcy are a better option for this.

A good start is with a credit counseling organization. Because these organizations are non profit, they wll provide you with the debt relief alternative that is best for you. They also offer financial education and budgeting help.