Quick Answer: Debt management plans are credit counseling programs that consolidate monthly payments and may reduce interest rates, but aren’t automatically the best option despite credit card company recommendations. Consumers should compare all debt relief options including settlement and bankruptcy using calculators and research completion rates before choosing any company.
“Dear Steve,
I have one credit card card with 12,000 then another with 8,000 with 15% and a store card with 2,000 paying out about $550 a month was considering debt consolidation because the finance charge on the $8,000 is $108 a month. I have looked at so many companies and i can’t decide. One credit card company listed 3 companies to contact Novadebt, Moneymanagement and personalfinance.
My questions are how do i choose a settlement company? What should i be looking for?
Rhonda”
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Dear Rhonda,
I think we need to start with what is really the best tool to use based on your situation and goals. Just because your credit card company suggested you contact a credit counseling company, that’s doesn’t mean that’s the best approach for you. To me that means that’s the best approach for your credit card company since they suggested it.
I’m going to challenge you to do a bunch of homework and then come back and post your results in the comments below. This will help you to make the most informed decision possible.
Let’s start with the basics.
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
Once you’ve identified a company you want to work with, then follow my step-by-step guide on how to check out a debt relief company.
Please post your responses and follow-up messages to me on this in the comments section below.
Dealing With Debt? Understanding your options is the first step. See how all your debt relief options compare — including ones most sites won’t tell you about. The Find Your Path quiz gives a recommendation based on your actual numbers, and the Scam-O-Meter checks any company’s complaint history before you sign. Federal Reserve research shows bankruptcy filers recover faster than those who don’t file.
can I trust the following, they were suggested by citimortgage
helpwithmycredit.org, I cannot make my min payments with being late on there bills