Demand for debt counseling is at a record high; 17 straight quarterly fed rate hikes, slowing home values (harder to get a debt consolidation loan), rising tuition costs, rising gas prices, bankruptcy reform… the list of consumer catalysts into debt counseling programs just seems to keep growing. But what are your options and which program is right for you? Read on.

First, some startling statistics: there is over $13 trillion in consumer debt out there, and over $2 trillion of it is revolving. When interest rates rise, that revolving debt hits the consumer’s pocket book. For example, it has been estimated that over $2 trillion of mortgage debt that is based on adjustable rates (”ARMs” or Adjustable Rate Mortgages) is going to re-adjust over the next 2 years… increasing American consumer interest fees by over $50 billion! What does it mean, it may mean that you cannot afford to pay your bills, and for many people, that means credit card debt payments are too high to afford which leads to Debt Counseling.

Debt counseling could mean a variety of things, from a traditional debt management plan that cuts interest rates and lowers monthly payments to a more aggressive negotiated debt settlement program that attacks principal as well as interest. Make sure that you sit down and do the budget analysis (http://www.bills.com/guide) and assess your monthly budget. The amount that you can contribute to paying down your debts should be the first step in evaluating your debt counseling options. If you can afford more than 2.5% of your total debt amount in a monthly payment, then credit counseling may be the best debt counseling option. If you can only afford 1.5% of your total debt monthly, then seek help from debt settlement or debt negotiation firms. If you cannot afford to make any payments, then you may want to evaluate bankruptcy in addition to your debt counseling options.

The next step in choosing a debt counseling program is to prioritize what is more important to you: your savings or your credit rating. If you just want to save the most amount of money while getting debt free as fast as possible, then debt settlement may be best. If you are looking to buy a home in the next year or two, and your credit rating is your number one concern, then you will not want to go delinquent on your bills and may want to explore a debt consolidation loan or credit counseling.

With any debt counseling program, it is important to remember that no one size fits all; make sure to shop around and find the best program and an honest and ethical company that has a solid Better Business Bureau rating before jumping in.



By: Brad Stroh

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If you want to consolidate your debts but have bad history, there is hope. There are plenty of options available these days compared to the number of options that were once available. With the power of the internet, you can instantly connect to may bad credit debt consolidation loan providers in a heartbeat.

When you intent to consolidate debts, you need to apply and qualify for a debt consolidation loan. For most individuals, unlocking the equity in your home makes sense when it comes to debt consolidation. If the loan amount is less, you may also be able to get an unsecured loan to pay off your debts.

With debt being a hot topic, there are plenty of debt consolidation companies who will be willing to help you ease off from debt at a small monthly fee. These debt consolidation companies work with your creditors on lowering your current interest rate and eliminate fees so your obligations are reduced.

It is important to do an adequate amount of research before considering a debt consolidation company. Research will go a long way in determining the right debt consolidating company. Select a debt consolidation company that has served a few hundred individuals like you and can bring in the results. You do not want to throw the money on some company that might not live up to your expectations.

If you go to a local church or to a public library, ask them for references. Besides, friends and families can also provide the best of bad credit debt consolidation references you may need. If you have any friends who have undergone debt consolidation, they may be able to provide you with some good referrals and narrate you their experience working with certain debt consolidators.

To see a recommended list of debt consolidators or to learn more about bad credit debt consolidation, visit our website.



By: Bill Smith

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There are many reasons why people find themselves going into debt. An unexpected and prolonged illness, an injury, the loss of work, divorce, a sudden death in the family, or the failure of a business can all result in a financial crunch which ends up with an individual struggling to dig out from under a burden of debt. No matter what age or income bracket, anyone is susceptible to financial emergencies. In order to regain their financial standing and to get rid of the outstanding bills, many people apply for debt loans.

The strange thing about racking up debt is that as the bills accumulate and hopelessness begins to set in, individuals give up and begin to spend even more. The feeling that the debt accrued is just too big to be dealt with is so prevalent that the situation begins to look impossible. In this situation, it is hard for people to know where to turn to for help. It is time to stop avoiding the problem like you avoid the collection agencies on the phone and to look into options such as consumer debt consolidation.

The key to debt management is to realize that the debt must be managed, not hidden from. There are several opportunities to savea person from drowning in their debt, of which debt consolidation is a major component.

For starters, there are lots of counseling services set up to provide people with strategic plans for managing their debts while avoiding more. Theese programs often offer credit repair free of charge, working for the individual debtore rather than the creditors. With this type of service, monthly payments to creditors can be greatly reduced, sometimes by more than one half.

Many consumers opt for debt loans. These loans are applied for through various institutions. The consumer then uses the money to pay off all outstanding debt to creditors and make lower monthly payments to just one place.

There are lots of services available on the Internet which offer suggestions and strategies for getting out of debt. These range from financial institution websites to discussion forums where debtors can discuss strategies with other consumers who have been or are in a similar situation.

There are also special clinics designed to assist people in dire financial straits. Most watchdogs suggest that these clinics be avoided, however, as many operate outside of the law and some have even been caught stealing the credit files of clients.

Finally, people looking for options might want to look into getting help from a certified debt repayment representative. These professionals know the ins and outs of credit negotiation and also can assist in getting collection agencies off your back.



By: Erik Slarkowski

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Some people may wonder about the point of having a non-profit organization such as those that provide credit counsling. After all, everyone wants something, it is hard to believe that organization exist in order just to help people.

If you are skeptical about the altruistic motives behind a company that is set up to help consumers with credit card debt settlement through methods such as consumer debt counseling, it might be useful to be informed of the benefits offered these companies for holding the non-profit title.

First of all, having the non-profit lable exempts these companies from federal taxes, even though they exist in order to help people settle credit card debt. In addition, they are usually exempt from several state taxes, which means that they save thousands of dollars every year just by being non-profit. The label also means that many of these companies are eligible to receive governmental grants and private grants as well each year.

Creditors will also tend to look upon non-profit organizations positively as this status is mandatory in order to initiate Fair Share contributions. Finally, non-profit status will also allow companies to avoid consumer protection laws in some states, which increases their ability to make profits. It should come as no surprise that major credit counseling companies proudly display their status as non-profits for all to see. Many of these companies, however, use this label as a way to trick potential customers in and accomplish their real goal, which of course is maximizing their profits.

Although this is true of several credit agencies, it is not the case for all and there is legitimate help out there for consumers who are seeking to reduce their debt through these services. One of the first things to look for when determining whether such a company is legit is to find out if it is accredited through the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. The Better Business Bureau is of course another way to determine the kind of services the company offers, and if they have done so in a consistently honest way.

Good credit counseling agencies are a necessity for debtors, and individuals must keep this in mind. The agencies help debtors to create debt management plans and to get their financial house in order before disaster strikes. They also carry clout with creditors and can therefore help to lower payments and interest rates, as well as eliminating late fees and finance charges. Many companies will also help debtors by calling off collection agencies and other organizations that try to get the money out of the debtor. Remember when you are looking for a company that can help with debt management that you have to be very careful in what you settle for.



By: Erik Slarkowski

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Consumer debt in the UK is a major problem, both at a social and individual level. There is not that we can do about the social problem, but individuals can take action to prevent and overcome their own debt problems. While UK citizens may be unfortunate to live in a society where debt is commonplace, they are also fortunate in the way consumer credit and debt counselling services have evolved to meet the problem head on.

Those individuals who start to find their personal debts overwhelming and causing great worry may decide they should seek help through credit counselling. Often, though, they would have benefited from the advice of a counsellor much early. There is still a stigma attached to debt, insolvency and bankruptcy in the UK, and bankruptcy laws are very harsh compared to some states in the US. This may be a contributory factor in discouraging people from taking action and sharing their plight with others.

Such reluctance is a shame, but even so, thousands of people seek debt or credit counselling in one form or another every month in the UK. Fortunately, once they have made the decision to seek advice, they have a good choice of advice sources. Importantly, there are several free debt advisory services, so there really is no need to be tempted by any solicitation from debt advisors who are going to charge.

Here are four free debt counselling services in the UK you can consider:

1. Citizen’s Advice Bureau

The Citizen’s Advice Bureau (CAB) deals with many types of consumer advice, but debt counselling has become a prominent area for them over the last two decades, as the British have slipped into habitual debt problems.

The CAB provides a thorough and free service through its specially trained consumer debt counsellors, who will deal with your creditors on your behalf once you provide all the necessary details of your debts. I have known three people who have used CAB’s debt counselling and were very happy with it.

2. National Debtline

The National Debtline is a telephone based service which has existed, as a charity, since 1991. This is another free service that has evolved to meet the strong demand for debt advice. Some people may prefer the telephone and post to face to face meetings with the consumer credit counsellor, and this service is very popular.

3. Consumer Credit Counselling Service

The Consumer Credit Counselling Service (CCCS) is also a registered charity. Their purpose is to assist people who are in financial difficulty by providing free, independent, impartial and realistic advice; exactly what somebody with debt problems needs. The umbrella charity is called the Foundation for Credit Counselling.

4. Insolvency Helpline

A different type of organisation is the Insolvency Helpline, which offers debt advice to both consumers and companies. It is the largest professional network of lawyers and accountants, specialising in money advice, in the UK. The Insolvency Helpline promotes the provision of independent money advice from the UK’s regulated professional bodies, which means the debt or insolvency counsellors are not only well qualified, but have to follow their professional body’s guidelines.

From the above four bodies, you are sure to find one that will provide valued assistance with coming to terms with and dealing with your debt problems. There is absolutely no need to succumb to the advertising of those who may try to prey on your hardship, and seek upfront payments for their advice.



By: Roy Thomsitt

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