debt consolidation

The process of fully paying off indebtedness by installments of principal and earned interest over a definite time. The amortization period is the timeframe over which the entire debt will be repaid.

For a free debt consolidation counseling session, please fill out the form on the right.

The cost of financing a balance on a loan expressed as an annual percentage. To calculate the amount owed in interest each month divide the APR by 12. For example, if the APR is 18% the monthly rate is 1.5%.

For a free debt consolidation counseling session, please fill out the form on the right.

Tangible or intangible goods owned by an individual that have a cash value. This includes property, goods, savings, and investments.

For a free debt consolidation counseling session, please fill out the form on the right.

The average daily balance is a method used to calculate interest charges. It is calculated by adding the outstanding balance on each day in the billing period, and dividing that total by the number of days in the billing period. The calculation includes new purchases and payments.

For a free debt consolidation counseling session, please fill out the form on the right.

A term used to describe a poor credit rating. Common practices that can damage a credit rating include making payments late, skipping payments, exceeding credit card limits or declaring bankruptcy. "Bad Credit" can result in being denied credit.

For a free debt consolidation counseling session, please fill out the form on the right.

The total (outstanding) amount of money owed. It includes any unpaid balance from the previous month, new purchases, cash advances, and any charges such as an annual fee, late fee or interest. The balance should not be confused with the monthly payment (the minimum payment each month), which is generally 2% to 5% for credit cards.

For a free debt consolidation counseling session, please fill out the form on the right.

Moving a debt balance from one credit card to another. This is often done with special checks or forms, or may be offered as an option on some credit card applications. The usual reason is to shift an ongoing debt obligation to an account with a lower interest rate.

For a free debt consolidation counseling session, please fill out the form on the right.

Bankruptcy is a legal declaration of the inability to repay debts. Bankruptcy should be viewed as a last resort. It will have a severe impact on a credit rating and will remain on a credit report for ten years. Furthermore, bankruptcy is not a solution in all cases. Federal student loans, Federal tax debt and child support are all exempt from bankruptcy protection. Bankruptcy agreements vary but there are two types of agreements that most people choose: Chapter 7 and Chapter 13.

For a free debt consolidation counseling session, please fill out the form on the right.

The new bankruptcy law, which went into effect on October 17, 2005, states that before filing for bankruptcy, one must enroll in a credit counseling program.

Christian Financial Consultants can provide eligible credit counseling. In fact, with our credit counseling, debt settlement, and debt consolidation programs, we may be able to help you avoid bankruptcy completely. When you file for bankruptcy, it stays on your record for 10 years -- making it difficult to get a loan, find a job, or even rent an apartment. For this reason, it has always been a good idea to try debt settlement and debt consolidation before considering bankruptcy filing.

Learn more about our credit counseling, debt settlement, and debt consolidation programs. Fill out the form on the righ side of this page for a free bankruptcy credit counseling session.

This is the credit score that creditors look at when determining if you are credit worthy. The Beacon Score is determined by negative entries such as late payments which would decrease your score or a positive, timely payment history on your accounts, which would increase your score.

For a free debt consolidation counseling session, please fill out the form on the right.

The number of days between statement dates. This is generally about 25 days. The billing cycle does not usually coincide with a calendar month.

For a free debt consolidation counseling session, please fill out the form on the right.

A lump sum payment made to the creditor by the borrower or by a third party to reduce the amount of some or all of a person's periodic payments to repay the debt.

For a free debt consolidation counseling session, please fill out the form on the right.

In a Chapter 7 agreement, the court resolves most debts by selling assets and property so that the filer is given a fresh financial start. The court takes all assets including cars, homes, furnishings, jewelry or anything else of value. The assets are sold to pay off the debt. There are some debts that a person may wish to repay on their own instead of having the court resolve it. This is called reaffirmation. Reaffirmation is a special payment plan with the court. For example, if a car loan is reaffirmed, the person keeps the car and makes payments under new terms. Chapter 7 bankruptcy will not eliminate debts due to taxes, child support, alimony, student loans, court fines or personal injury caused by driving drunk or under the influence of drugs. A Chapter 7 filing will remain on a credit report for 10 years.

For a free debt consolidation counseling session, please fill out the form on the right.

In a Chapter 13 agreement, the court creates a debt repayment plan that allows the filer to keep their property. In order to file for Chapter 13, a person must have a source of income and promise to pay part of their income to creditors. The court allows the filer to keep any assets that have debts against them if they make payment on them under Chapter 13s. A Chapter 13 filing will remain on a credit report for 10 years. With Chapter 13, there is a better chance of obtaining future loans and credit.

For a free debt consolidation counseling session, please fill out the form on the right.

Is your debt burden causing you to consider filing for bankruptcy?
Christian Financial Consultants will light the path to freedom and will minister the support that all of His followers' need in challenging times.

Christian Financial Consultants' unique Christian bankruptcy prevention program may help you to:

• Lower your monthly payments In some cases monthly payments can be reduced up to 70%.
• Drastically reduce interest rates Christian Financial Consultants is currently achieving average interest rates between 6% and 8% for our clients.
• Eliminate late fees and over-the-limit charges

Before filing for bankruptcy, be sure to look at all your options. We can can help you decide if our Christian Bankruptcy, debt consolidation, debt settlement, or credit counseling programs are a good fit for your situation.

Please fill out the form on the right for a FREE Christian Bankrupcty and Debt Consolidation counseling session.

If you've reached a turning point and are ready to walk the path towards a debt-free life, we are here to provide guidance, inspiration and the assistance that bring your goals into reach. Our unique Christian Credit Counseling program can help you.

Christian Financial Consultants' unique credit counseling and debt consolidation program may help you to:

• Lower your monthly payments In some cases monthly payments can be reduced up to 70%.
• Drastically reduce interest rates Christian Financial Consultants is currently achieving average interest rates between 6% and 8% for our clients.
• Eliminate late fees and over-the-limit charges

For a free Christian credit counseling session, simply fill out the form on the right.

For more information about our Christian Credit Counseling program, click here.

If you've reached a turning point and are ready to walk the path towards a debt-free life, we are here to provide guidance, inspiration and the assistance that bring your goals into reach. Our Christian Credit Counselors can help you.

Christian Financial Consultants' unique credit counseling and debt consolidation program may help you to:

• Lower your monthly payments In some cases monthly payments may be reduced up to 70%.
• Significantly reduce interest rates Christian Financial Consultants is currently achieving average interest rates between 6% and 8% for our clients.
• Eliminate late fees and over-the-limit charges

For a free session with one of our Christian credit counselors, simply fill out the form on the right.

For more information about our Christian Credit Counselors program, click here.

Struggling with the burden of excessive debt?
Christian Financial Consultants will light the path to freedom and will minister the support that all of His followers' need in challenging times.

Christian Financial Consultants' unique debt consolidation and credit counseling program may help you to:

• Lower your monthly payments In some cases monthly payments can be reduced up to 70%.
• Drastically reduce interest rates Christian Financial Consultants is currently achieving average interest rates between 6% and 8% for our clients.
• Eliminate late fees and over-the-limit charges

Please fill out the form on the right for a free Christian Debt Consolidation counseling session.

Is Christian debt counseling right for you?

If you've reached a turning point and are now ready to walk the path towards a debt-free life, our Christian Debt Counseling program can help you. Our program combines debt consolidation with Christian debt counseling, with the goal of helping you stay debt free.

Christian Financial Consultants' unique Christian debt counseling and debt consolidation program may help you to:

• Lower your monthly payments In some cases monthly payments may be reduced up to 70%.
• Significantly reduce interest rates Christian Financial Consultants is currently achieving average interest rates between 6% and 8% for our clients.
• Eliminate late fees and over-the-limit charges

For a FREE session with one of our Christian debt counseling specialists, simply fill out the form on the right.

Our Christian debt counselors can help you become debt free.

If you've reached a turning point and are now ready to walk the path towards a debt-free life, our Christian Debt Counseors can help you. Our debt consolidation, debt settlement, and credit counseling programs are designed to help make your debt payments more manageable, and eventually eliminate your debt completely.

Christian Financial Consultants' Christian debt counselors are experienced and can help you to:

• Lower your monthly payments In some cases monthly payments may be reduced up to 70%.
• Significantly reduce interest rates Christian Financial Consultants is currently achieving average interest rates between 6% and 8% for our clients.
• Eliminate late fees and over-the-limit charges

For a FREE counseling session with one of our Christian debt counselors, simply fill out the form on the right.

Is Christian Debt Management right for you?
Managing debt can be a difficult task. High interest rates, fees, and extended repayment terms may mean you end up repaying several times the original amount that was borrowed.

This is where Christian Financial Consultants can help. Through our Christian Debt Management program and extensive network of not-for-profit resources, we have found common ground for our clients and more than 12,000 creditors nationwide. By reducing or eliminating interest rates and fees and by restructuring monthly payments, we can help you to make significant progress on your debt every single month.

For free information about how our Christian Debt Management program can work for you, please fill out the form on the right.

Christian Debt Reduction lowers your outstanding debt
Christian Financial Consultants will light your path to freedom and minister the support that all of His followers' need in challenging times. Our Christian debt reduction program can help.

Christian Financial Consultants' unique debt reduction and credit counseling program may help you to:

• Lower your monthly payments In many cases, monthly payments can be reduced up to 70%.
• Drastically reduce interest rates Christian Financial Consultants is currently achieving interest rates between 6% and 8% for our clients.
• Eliminate late fees and over-the-limit charges

Christian Debt Reduction is more than just debt consolidation. Our Christian debt reduction program also includes christian debt settlement. With debt settlement, the principal of your debts can actually be reduced, easing your debt burden in a significant way.

Please fill out the form on the right for a free Christian Debt Reduction counseling session.

Christian Debt Settlement can lower your outstanding debt
Christian Financial Consultants will light the path to freedom and will minister the support that all of His followers' need in challenging times. Our Christian debt settlement program can help.

Christian Financial Consultants' unique debt settlement and credit counseling program may help you to:

• Lower your monthly payments In some cases monthly payments can be reduced up to 70%.
• Drastically reduce interest rates Christian Financial Consultants is currently achieving average interest rates between 6% and 8% for our clients.
• Eliminate late fees and over-the-limit charges

Christian Debt Settlement is more than just debt consolidation. With our Christian debt settlement program, the principal of your debts can actually be reduced, easing your debt burden in a significant way.

Please fill out the form on the right for a free Christian Debt Settlement counseling session.

Having difficulty meeting your obligations despite your sincere intentions?
Christian Financial Consultants will light the path to freedom and will minister the support that all of His followers need in challenging times.

Financial concerns distracting you from service to God, family and society?
Christian Financial Consultants will return you to a simpler lifestyle - a life of joy and service that God and His son intended for all of us.

Christian Financial Consultants' unique debt consolidation program may help you to:

• Lower your monthly payments
• Drastically reduce interest rates
• Eliminate late fees and over-the-limit charges

Please fill out the form on the right for a free Christian Debt Consolidation counseling session.

At Christian Financial Consultants, everything we do is based on Christian financial concepts.

Our credit counseling and debt consolidation programs are rooted in Christian values and Christian financial concepts. Christian Financial Consultants can help you down the path to a life free of financial burdens.

Our Christian Financial Concepts counseling program can help you to:

• Lower your monthly debt payments In many cases, payments can be reduced up to 70%.
• Drastically reduce interest rate charges Christian Financial Consultants is currently achieving average interest rates between 6% and 8% for our clients.

To learn more about Christian financial concepts, please fill out the form on the right side of this page for a free Christian Financial Concepts counseling session.

Having difficulty meeting your financial obligations despite your sincere intentions?

Christian Financial Consultants will light the path to freedom and will minister the support that all of His followers need in challenging times.

Financial concerns distracting you from service to God, family and society?
Christian Financial Consultants will return you to a simpler lifestyle - a life of joy and service that God and His son intended for all of us.

Christian Financial Consultants' unique debt consolidation program may help you to:

• Lower your monthly payments
• Drastically reduce interest rates
• Eliminate late fees and over-the-limit charges

Please fill out the form on the right for a free Christian Financial Counseling session.

Generally, any loan or credit sale agreement in which the amounts advanced, plus any finance charges, are expected to be repaid in full over a definite and specified time. Most real estate and automobile loans are closed end agreements.

For a free debt consolidation counseling session, please fill out the form on the right.

Property (or other asset) that is offered to secure a loan or other credit and that becomes subject to seizure on default. (Also called security.)

For a free debt consolidation counseling session, please fill out the form on the right.

Extra requirements other than repayment (such as a ‘structural adjustment’ policies) demanded by the lender before new loans are granted. Conditionality refers to 'conditions' attached to the loan agreement.

For a free debt consolidation counseling session, please fill out the form on the right.

Consolidating Credit Cards to One Account
by Scott Bilker

Scott Bilker is the author of the best-selling book "Credit Card and Debt Management." He is also the Editor and publisher of the FREE DebtSmart® E-mail Newsletter (http://www.debtsmart.com). Sign up today!

Hi Scott,
I am a recent college graduate and I have accumulated about $4,000.00 worth of debt spread out in 4 different credit card accounts. I would like to transfer all of the balances to an account with a lower APR to save money and to make monthly payments more convenient. The problem is that I have not been able to be approved for a credit card with a limit of over $1500.00. Besides having multiple cards near their credit limit, I have good credit and always make payments on time. Is there anything that you can recommend? Please Help!
--Mary

Mary,

Thanks for writing!

I know just how you feel. I had the same situation when I was finished with college because I had to use my credit cards to help finance my senior year.

Here's the deal. The most important aspect of that debt is how much it's costing. At least that's my opinion. The best loan is the cheapest loan and I consider it worth the work to write four separate checks if the rates are worthwhile.

Many people make the mistake of consolidating simply because they don't like the work involved with handling many accounts. The mistake is that they consolidate at a greater rate for the convenience of having one payment. It's a personal choice to decide if it's worth a little extra in interest charges to avoid dealing with four accounts. It's not worth the extra cost for me.

If you do consolidate your accounts into one then please do not close your zero balance accounts! If you close your accounts you close your credit options. You may need those other cards sometime in the future to make the current banks compete for your business. You always want to have credit options and the best options, in my experience, emanate from banks that you have had a long relationship with.

Now let's talk about consolidating and saving money!

You mentioned having trouble getting new lines of credit to consolidate that $4,000 but there's another strategy you should attempt. Call each of your existing accounts and ask for their balance transfer department. Tell the rep, "I have about $3,000 of debt on other cards. If you (1) raise my credit limit, and (2) give me a great rate, I'll do the transfer right now otherwise I have three other banks to call!"

They may increase your credit limit on the spot by a few hundred dollars, they may do as you ask, they may need to get back to you, they may say no. No matter what happens, call each bank and see what they can do. If they do give you a good offer, then transfer your balance.

If they deny your credit line increase, then be sure to get a free copy of your credit report from the credit-reporting agency that the bank used to reject your line-increase request.

Good luck and please let me know what happens!

Regards,
Scott

PS: And you can take that to the bank! :)

For free information about how we can help you reduce your debt, please fill out our form.

Is consumer debt counseling for you?

Christian Financial Consultants can help you answer that question. Our consumer debt counseling program may be able to help you mange your debts and eventually to eliminate debt obligations completely.

Get started today. For a FREE consumer debt counseling session, please fill out the for on right side of this page. There is no charge and no obligation for this consumer debt counseling session.

Benefits of Consumer Debt Counseling:

• Lower your monthly payments In some cases, payments can be reduced as much as 70%.
• Significantly reduce interest rates Christian Financial Consultants is currently achieving interest rates between 6% and 8% for our clients, much lower than high credit card interest rates.
• Eliminate late fees and over-the-limit charges

Please fill out the form on the right for a free consumer debt counseling counseling session.

The promise to pay in the future in order to buy or borrow in the present. The right to defer payment of debt.

For a free debt consolidation counseling session, please fill out the form on the right.

Credit card debt can be one of the worst types of debt, due to high interest rates. High-interest credit card debt can result in hundreds of dollars in interest each month, making it even more difficult to reduce or eliminate your credit card balances.

Debt consolidation can be an effective way to reduce and eliminate credit card debt. Our counselers can help you consolidate and reduce your credit card debt. Simply fill out the form on the rigth to receive a free counseling session.

Credit Card Debt Consolidation can lower your credit card payments.
Christian Financial Consultants will light the path to freedom and will minister the support that all of His followers' need in challenging times. Our credit card debt consolidation program can help.

Christian Financial Consultants' unique credit card debt consolidation program may help you to:

• Lower your monthly payments In some cases, monthly payments can be reduced as much as 70%.
• Drastically reduce interest rates Christian Financial Consultants is currently achieving average interest rates between 6% and 8% for our clients, much lower than high credit card interest rates.
• Eliminate credit card payment late fees and over-the-limit charges

Please fill out the form on the right for a free credit card debt consolidation counseling session.

What is credit card debt consolidation?
Credit card debt consolidation is a means of consolidating all of your credit card debt into a single debt obligation, usually with a much lower interest rate. Our credit card debt consolidation program can help you pay off your credit card debt much faster.

Please fill out the form on the right for a free credit card debt consolidation counseling session.

Getting Your Overpayment Refund
by Scott Bilker

Scott Bilker is the author of the best-selling book "Credit Card and Debt Management." He is also the Editor and publisher of the FREE DebtSmart® E-mail Newsletter (http://www.debtsmart.com). Sign up today!

Dear Scott,

I receive your newsletter and love it. Very helpful!

Recently I have taken out a debt consolidation loan. From application for the loan and closing on the loan was 3 months. The consolidation loan included preprinted checks made out to each of the creditors (5) with the total balance owed at the application time.

The problem was that during the 3 months before closing I had been paying the minimum payment, so when the loan closed and the checks were issued the check amount was higher then the actual balance.

I have received credit checks from all of the creditors for the difference but one. The one I have sent 2 letters to the customer service address request the account be closed and issue the check.

It has been 2 months with no response from the creditor. I have received 2 statements showing the credit. What is the next step to getting the money back?

They owe me $179.00 to much money to walk away from. What is very upsetting to me is that, if I owed them money, I would have to pay late fees, interest and get marks on my credit report.

Sincerely,
Aimee

Aimee,

Thanks for writing! I love your attitude!

They should be required to pay you a late fee! But doubt that will ever happen but maybe someday a law can be added to the books that would require late fees due the consumer in this situation.

I have certainly been in similar situations. By making an overpayment to any creditor, you create a credit balance. That credit balance must be returned to you. You asked for a check twice and they haven't sent it.

Here's what I would do...

1) I'd call and speak to a customer service rep to see what's going on with the check. Maybe they sent it and the "check is in the mail."

2) If I still didn't receive the check, I'd use the credit card for my normal shopping, groceries, etc. Once I spent $179 I'd stop. If I went over $179 I'd pay them the difference and never use the card again.

3) Here's a technique you can try if you don't mind more hassle. I would do it because I'm also interested in finding out the results of creative financial techniques and telling everyone what happened. If I had credit checks issued on that credit line I'd write myself a check for $179 and deposit it into my personal checking account.

There a few possible complications with this: (1) if they have already sent you a check for $179 then it would be a cash advance and subject to cash advance fees (2) even if they haven't issued the check they may still try to charge you a cash advance fee, even though it's your money! In fact, I would bet they would charge you the fee. If I received a statement, after writing the check, that the $179 brings my balance to zero (plus a fee), because it's my money, and they charged me a cash advance fee, I'd call the bank and ask to have that fee waived because they never sent me the credit check. They'd probably argue and say it's still a cash advance to which I would reply, "it's not an 'advance' against my credit line because it's not a loan, it's my own money!" If they still didn't waive the fee I'd formally dispute the charge. I don't know if you want to make a mountain out of a molehill however, it is an option.

4) Same as (3) but use the card at an ATM or do a cash-advance at a bank.

Please let me know the outcome of your situation--thanks!

Regards,
Scott

For free information about how we can help you reduce your debt, please fill out our form.

A record of how a person has borrowed and repaid debts. A person's credit history can can span up to 10 years or more.

For a free debt consolidation counseling session, please fill out the form on the right.

Debt can build up and become more and more difficult to manage. High credit card interest rates make the situation even worse. Our credit repair counselers can help you reduce your debt and repair your credit.

We negoitiate with your creditors to reduce your interest rates and consolidate your debt into a single, manageable monthly payment.

Simply fill out the form on the right for a free Credit Repair counseling session.

A statistical system used to determine whether or not to grant credit by assigning scores to various characteristics related to creditworthiness. An example of a credit scoring system is the Beacon Score.

For a free debt consolidation counseling session, please fill out the form on the right.

A creditor's measure of a consumer's past and future ability and willingness to repay debts. Creditworthiness refers to the likelyhood that a person will repay a debt completely and on time.

For a free debt consolidation counseling session, please fill out the form on the right.

Are your debts piling up and becoming difficult to manage? Debt consolidation can be an effective way to reduce the burden and help you along the path to completely eliminating your debt.

Our debt consolidation program can help you:

• Consolidate your payments into one monthly payment
• Lower your monthly payments
• Drastically reduce interest rates
• Eliminate late fees and over-the-limit charges

For a free, no obligation counseling session with our debt consolidation specialists, please fill out the form on the right.

Need debt consolidation help?

Debt Consolidation can lower your credit card payments.
Christian Financial Consultants can light the path to freedom and will minister the support that all of His followers' need in challenging times. Our debt consolidation program can help.

Christian Financial Consultants' unique debt consolidation help program may help you to:

• Reduce your monthly payments In some cases, your payments can be reduced as much as 70%.
• Drastically reduce interest rates We are currently achieving average interest rates between 6% and 8% for our clients, much lower than high credit card interest rates.
• Eliminate late fees and over-the-limit charges

Please fill out the form on the right for a free debt consolidation help counseling session.

What is debt consolidation, and how can it help?
Debt consolidation is a means of consolidating all of your debt into a single debt payment, usually with a much lower interest rate. Our debt consolidation program can help you pay off your debts much faster.

Please fill out the form on the right side of this page for a FREE debt consolidation help counseling session.

Debt Negotiation
by Scott Bilker

Scott Bilker is the author of the best-selling book "Credit Card and Debt Management." He is also the Editor and publisher of the FREE DebtSmart® E-mail Newsletter (http://www.debtsmart.com). Sign up today!

Question

I need to know if this will really work. It makes me very nervous in not paying my bills so they can be negotiated. I talked to DEBTCO and I got very excited that I could be out of debt in 3 years but when I got the papers (contract) I felt a little uneasy. Should I be uneasy? Should I think more about consolidation? Please help me make the right choice. I really need help with my debt. Thank you. --Jackie

Answer

Jackie,

Thanks for writing!

I do not know all the details for DEBTCO however, I'm certainly familiar with negotiating for payoff terms with credit card banks.

It's been my experience that credit card banks will negotiate settlements with customers who are having trouble. And "having trouble" does include not being able to make their payments.

My impression is that you're a good money manager and can find a way to pay your bills by using your credit options. You don't want to be late because you know that would really hurt your credit history. Worst of all, paying late may increase the cost of your outstanding balances if banks penalize you by raising your rates--not to mention all the late fees and other penalties.

My guess is that they (DEBTCO) want you to stop paying so you'll fall into the category of being in trouble and, therefore, it will be much easier for them to settle your accounts. Even if they can settle your accounts for less, which is probably the case, the settlement will be reported in your credit history and will certainly not look pretty to future lenders.

Okay, so I've written a lot of words so far but really haven't reached a conclusion. This is because there's always a trade off. You can do what DEBTCO says and probably (not definitely) have them settle your accounts for less thus saving you money.

BUT you risk the consequences of not paying your bills on time which can be further-reaching than the penalties on the accounts you want to settle. Lately, many banks have changed their policies to include clauses that give them the right to raise your rates if you're late paying other creditors!

Here's an example of that from my Citibank card: "If you default under any Citibank Card Agreement because you fail to make a payment to us or any other creditor when due, you exceed your credit line, or you make a payment to us that is not honored by your bank, we may increase the ANNUAL PERCENTAGE RATE (including any promotional rate) on all balances to a default rate of up to 24.99%."

What to do?

I never want to tell people what they should do. Ultimately you should base your decision on what you have learned. Speak with people that you trust to help you make our decision.

However, I can tell you what I would do if I were in your position.

I would call each bank that you want to settle with and ask to speak with their "settlement department." Tell them that you're going to be having trouble paying your bill and that you may even be considering bankruptcy (which you may have to sometime), but you want to find out your options for paying off the account in full if they reduce how much you need to pay to "settle" the account. For example, if you owe $5,000, tell them that you can pay it off in full for $2,500.

They may say that you must pay it off in ful,l or they may offer other payment plans or even reduce the interest rate to zero. They will need to be convinced that you really need help otherwise they won't consider settling the account for less than the outstanding balance.

Just make it clear to them that you'll be talking to a bankruptcy attorney to explore that option. Tell the bank that if they can offer you something reasonable you'll work with the bank, or else you'll be forced to consider the bankruptcy option.

What I'm suggesting is that you try to settle the accounts yourself first. You may not be able to get better payoff numbers than DEBTCO but it's possible that you can. Also, you may be able to avoid the problem of not paying your accounts on time.

I'd be happy to look at your contract with DEBTCO and give you my opinion on what they're promising. You can send it to me by email or fax to (609) 660-1412.

Good luck and please let me know what happens!

Regards, Scott

For free information about how we can help you reduce your debt, please fill out our form.

Many Questions...Many Answers
by Scott Bilker

Scott Bilker is the author of the best-selling book "Credit Card and Debt Management." He is also the Editor and publisher of the FREE DebtSmart® E-mail Newsletter (http://www.debtsmart.com). Sign up today!

I want to thank everyone who watched my interview CN8 in New Jersey, Pennsylvania, and Delaware on January 3rd, 4th, 7th, and 11th! The show is "Real Life" hosted by Mary Amoroso and it airs at 6:00 PM daily.

After each show I received many great questions and many of these viewers allowed me to share their questions with everyone. I received questions about mortgages, debt counselors, consolidation, credit histories, bankruptcy, medical bills, credit cards (of course), and many other topics. Below are the some of those questions and answers.

Question:
I have approximately $20k in credit card debt, the bulk of this is from one credit card @ 22% rate. I am not a homeowner, so I am considering the services of one of the non profit debt counseling companies, i.e. AmeriDebt, Cambridge Credit Counseling. I have been paying the minimum payments on my credit cards each month, but I need to be paying more. So far my credit report shows nothing abnormal. What will happen to my credit report/history if I use one of these credit counseling services?
--Dan

Answer:
Dan,

Thanks for writing!

It's hard to tell exactly what's going to happen to your credit history if you use their services. I would try to resolve the situation with each creditor one at a time.

You can read about the experiences of one of my readers, with credit counselors, at:
http://www.debtsmart.com/pages/article_contest_counsel.html

I would also look into getting the as much of that debt to a lower rate card--make the banks compete for your business! You can probably get better rates from other banks because you seem to have a good credit history. Read my article about getting better credit at:
http://www.debtsmart.com/pages/article_getting_credit.html

Good luck and please let me know what happens!

Regards,
Scott

Failure to meet the terms of a credit agreement. Default usually refers to the inability and failure to repay a debt.

For a free debt consolidation counseling session, please fill out the form on the right.

A legal Discharge means a court has erased your debt(s). Not to be confused with a "charge off" or "write off" which is an accounting Discharge which does not erase debts.

For a free debt consolidation counseling session, please fill out the form on the right.

The total dollar amount paid to get credit. Finance charge usually refers to the total interest paid on a loan.

For a free debt consolidation counseling session, please fill out the form on the right.

A traditional approach to determining the finance charge payable on an extension of credit. A predetermined non-floating rate of interest is applied to the principal.

For a free debt consolidation counseling session, please fill out the form on the right.

Repayment terms calling for gradual increases in the payments on a closed-end obligation. A graduated payment loan usually involves negative amortization.

For a free debt consolidation counseling session, please fill out the form on the right.

Legal obligation to repay debt. A person's total liabilities is equal the total amount of debt owed by that person.

For a free debt consolidation counseling session, please fill out the form on the right.

A notice a creditor attaches to your property that tells the world that you owe the creditor money. You cannot sell the property without paying off the creditor because the lien makes the "title" (history of ownership) cloudy and a new owner won't buy under those conditions.

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Repayment schedule calling for periodic payments that are insufficient to fully pay off the loan. Earned but unpaid interest is added to the principal, increasing the debt. Eventually, payments must be rescheduled to fully pay off the debt.

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A line of credit that may be used repeatedly up to a certain limit. Also called a charge account or revolving credit.

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Amount of the loan. The principle amount of a loan is the total amount borrowed, and does not include any financing or interest charges.

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Revised timetable for loan repayments, usually granting longer repayment periods and often involving new loans to pay old ones.

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A creditor's right to take property or a portion of assets offered as security on debt obligation.

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A component of some finance charges, such as the fee for triggering an overdraft checking account into use.

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The monthly bill from a credit card issuer or other creditor that describes and summarizes the activity on an account. A statement includes the outstanding balance, purchases, payments, credits, finance charges and other transactions for the month.

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The date on which a statement is generated and issued, and the month's finance charges (interest) are added to the balance.

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An extra charge imposed on those who purchase with a credit card instead of cash. (Currently, surcharges for credit card purchases are prohibited.)

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A variable rate credit agreement, as distinguished from a fixed rate agreement, calls for an interest rate that may fluctuate over the life of the loan. The rate is often tied to an index that reflects changes in market rates of interest. A fluctuation in the rate causes changes in either the payments or the length of the loan term. Limits are often placed on the degree to which the interest rate or the payments can vary.

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Debt consolidation enables you to combine all of your monthly debt obligations into a single payment, making it easier to manage and pay off sooner. Unlike your exisitng debts, a structured debt consolidation plan is designed specifically to help you reduce and then eliminate your debt.

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Creditors often consider debt consolidation programs a positive sign, that shows that you are putting serious effort into repaying your debt. As you begin to repay your debt as part of a debt consolidation program, your credit rating is likely to begin to improve.

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