WARNINGS About Credit Counseling Programs and Long Term Debt Repayment Plans

In my first article in this series I outlined many benefits you get from working with a credit counseling agency. But there are also drawbacks to enrolling in a DMP (debt management plan) in order to get credit card payment relief. And the concerns are not minor, which is why the word WARNING is capitalized. … Read more

UK Individual Voluntary Arrangements to Set Record

By Andrew Smith Last year I predicted it would be a record year for IVAs. There had already been more than 40,000 Individual Voluntary Arrangements, the most-used personal insolvency procedure in England and Wales, in the first nine months of the year and here at ClearDebt we were pretty confident the total for the year … Read more

I Found Myself in Debt Again and Back in a DMP. Should I File Bankruptcy? – Carol

“Dear Michael, I filed BK in 2003 (April/discharged Nov 2003). I’ve found myself in debt again and I am thinking about filing again. I have been in a DMP for the past few months but I am so tight against I don’t know if I will make it through. Since I filed pre-2005, the laws … Read more

Which is Cheaper: Credit Counseling, Debt Settlement, or Bankruptcy?

How can you determine what debt relief option is the right fit for a given set of cash flow limitations. The 3 options that people typically seek outside assistance with are Debt Management Plans (DMP), Debt Settlement Programs, and Bankruptcy. There are benefits and drawbacks to each option. Companies and people selling you a specific … Read more

I Am a College Student. How Bad Is It to Pay My Bills Late? – Zaria

“Dear Steve, I’m a full time college student, who also works part time. I’m 21 and both of my parents are deceased. Right now I am well over my head in credit card debt (which I used to pay for textbooks and classes) and with my job at the verge of bankruptcy…my hours have been … Read more

I Went With Take Charge America and Refuse to File Bankruptcy. – Nic

“Dear Steve, I am 29 years old, married, own a home, 2 cars, and self employed. I started a debt management program with Take Charge America and have paid off approximately $14,000 so far. My payment is $1,327 per month. Due to the nature of my job, my income fluctuates and I have been seeing … Read more

Can I Keep One Credit Card Open for Business in a Debt Management Plan? – Dave

“Dear Steve, I am just barely above water, and the tide is coming in! 132,000 in mortgages (first & second). 53,300 in credit cards. Can you recommend a reputable debt management service? My goal is to pay down debt as quickly as possible w/out to much damage to credit. Also, I need to keep one … Read more

My Boyfriend Has $20,000 in Credit Card Debt on 8 Cards. – Kathryn

Kathryn “Dear Steve, My boyfriend has $20,000 in credit card debt on a total of 8 credit cards. He was able to pay his minimum payments & a little extra, as he had been trying to do the debt snowball elimination method. Recently Chase bought out a couple of the companies he has credit cards … Read more

Call to Action Debt Management Plans Rolling Out Slowly. May Benefit Consumers Looking to Repay.

For years I have been emphatic that in a credit counseling or debt management repayment plan, it isn’t the interest rate reduction alone that is important, people need to get their monthly payments reduced. That’s more important. New “Call to Action” debt management plans (DMPs) offer low or no interest rates to people who can … Read more

What Do You Think of the CCCS company Money Management International? – Carol

“Dear Steve, What do think of Money Management International? Are they the same company as CCCS? I have about 60,000 in debt and I need help my husband hasnt had a paycheck since Nov I did my own modification on my house back in Jan. I have no equity in my house they just lowered … Read more

Banks Agree to Wipe Out Up to 40 Percent of Credit Card Debt But Watch Out.

Credit card lenders include Discover Financial Services LLC, Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., Capital One Financial Corp., American Express Co. and HSBC Holdings have finally come together with the help of the National Foundation for Credit Counseling, Consumer Federation of America and the Financial Service Roundtable to start the process … Read more

Catherine Asks If There Is Hope Or Help For Debt

Catherine writes in: “My husband and I are behind on a few of our loans and one is a vehicle payment and the other if a flexline loan( pretty much a credit card) we have talked about bankrupcy but would like to avoid that. Are there any companies out there that offer help for these … Read more