If you are drowning in debt and are not sure where to turn, look online for practical solutions to help you get into a better financial situation. In today's information technology, there are many resources available at your fingertips that can help you become debt free, if you know where to find them.
Credit Counseling
There are several credit counseling agencies available online who can work with you by going over your current financial situation and then suggest reasonable courses of action to help reduce your debt. Companies such as American Consumer Credit, the CCCS Credit Debit Counseling or the National Foundation For Credit Counseling. When you are searching for a credit counseling service it is important to use a nonprofit agency who has an excellent rating by the Better Business Bureau. According to the Federal Trade Commission, FTC, a legitimate nonprofit agency charges little or no fees and are interested in working with you to help solve your financial problems while for-profit companies may offer many of the same services but charge high or hidden fees.
Debt Management Program
A credit counseling agency may suggest that you enroll in a debt management program, DMP. In this type of program a credit counselor will work with your creditors to reduce interest rates and monthly payments. In a DMP, you deposit money each month with your credit counseling company and then they use these deposits to pay your credit card bills, student loans, medical bills or other unsecured debts, according to a payment schedule they've worked out.
Because the FTC and some state's attorneys general have sued several companies using deceptive practices and even lying about being nonprofit, it is important check their rating with the Better Business Bureau. Make sure you get everything in writing before you agree to any debt management program, and keep track of all your monthly billing statements from your creditors to ensure your payments are being made on time.
Making Homes Affordable Payment Reductions
If you have a mortgage and are currently having problems making your monthly payments, you may qualify for a program called Making Homes Affordable. This is a loan-modification program that doesn't cost anything to sign up for and you can usually go through your current lender. Many consumers have saved hundreds of dollars a month on their current mortgage, making it easier to pay off other debt. Check with your lender to see if you qualify.
Hardship Programs
Many credit card companies are offering hardship programs to their consumers who have lost their jobs or income. A hardship program involves lowering your payment while you get back on your feet. Need Help Paying Bills is an online site that provides hardship program information along with direct phone numbers to connect you with Chase, Discover, Bank of America and other creditors.
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