Statistics from the United States Census Bureau show that more than 176 million people, almost 60 percent of the population, owned credit cards in 2007. But with credit comes debt, and many people find themselves in a tight financial situation due to overwhelming debt. If you find yourself drowning in consumer debt, there are options available to help you pay your creditors, reduce your monthly payments and create a better money management strategy for the future.
United Consumer Services
United Consumer Services offers a debt negotiation program to people who are facing financial hardship and have unsecured debts, or debts that have no collateral backup, including credit cards, medical bills and past-due personal utility bills. Once you are enrolled in the UCS program, your financial counselor will contact your creditors to negotiate a settlement, which can be less than what you owe. You will stop making monthly payments to your creditors and instead deposit money into a savings account that will be used to pay your debts. One disadvantage of the UCS program is when you are saving for settlement and no longer making monthly payments, your credit rating will be affected. Once your balances reach zero, however, your credit report will reflect fully paid debts. You will likely encounter enrollment and monthly fees to participate in the UCS program. UCS has an A- rating with the Better Business Bureau, higher than most other debt consolidation businesses of its kind.
United Consumer Services, LLC
10940 S. Parker Road Ste. 307
Parker, CO 80134
866-598-3373
unitedconsumerservices.com
National Foundation for Credit Counseling
The National Foundation for Credit Counseling is a nonprofit organization founded in 1951 that offers free and low-cost credit counseling and debt management plans for consumers. NFCC has certified counseling agencies--known as Consumer Credit Counseling Services, or CCCS--all across the United States and online. CCCS counselors provide financial advice and budget planning as well as a debt management program. Your CCCS agent will work with creditors on your behalf and may be able to reduce your fees and interest rates. Because NFCC and its agencies are part of a nonprofit organization, all of the money you pay to them will go to your creditors. NFCC has an A rating with the Better Business Bureau.
NFCC
801 Roeder Road, Suite 900
Silver Spring, MD 20910
800-388-2227
nfcc.org
Your Local Financial Institution
Many people who have consumer debt also have an auto or mortgage loan with a local bank or credit union. Local financial institutions sometimes offer their own debt consolidation programs either separately or in the form of a refinance on a current loan. This option can be advantageous because you already have a history with the business, so it involves more personal service than what can be offered with a national company. Your local bank may also offer lower interest rates so you will pay less over the course of the loan. You will likely need collateral in the form of a home, auto or personal property to secure the loan. Check with your loan officer to see what options are available to you locally.
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