How and Where To Find Credit Card Debt Help

Most people have faced a financial crisis at least once in their lives, whether caused by illness, loss of work, or overspending. Remember however, that it is not impossible to overcome and the situation does not necessarily have to go from bad to worse. Consider your options and choose between realistic budgeting and credit counseling from reputable organizations, decide on debt consolidation, or file for bankruptcy. You may also consider debt negotiation as an option. The question, of course, is how you will know which one is the best for you, and your situation. It would, primarily, depend upon your level of accumulated debt, your capacity for self discipline, and your hopes and prospects for your future.

Self-help steps like making a budget can be aided by some simple research. The local public library or bookstores is bound to have some information about budgeting as well as money management techniques. Computer software programs are available and can be excellent tools for maintaining a budget, balancing your checkbook, and planning your savings and debt repayments.

Learn your rights under the FDCPA: The Fair Debt Collection Practices Act which regulates debt collector activities and protects the consumer. If you are behind on you mortgage payments, and foreclosure seems to be looming, contact a housing counseling agency. They generally offer free help to homeowners who are having trouble making payments. But be sure they are a legitimate agency, by calling the Department of Housing and Urban Development or the local housing authority in your area.

Some of the better books available fairly easily today, from bookstores as well as online include The Total Money Makeover, by Dave Ramsey. It teaches you how to design a plan for paying down, and off, all your debt, to recognize dangerous money myths, and helps you build a nest egg for the future. The Automatic Millionaire by David Bach teaches you how to quickly and easily automate every aspect of your financial plan and stop worrying about your money. The Millionaire Next Door by Dr. Thomas J. Stanley and Dr. William D. Danko, teaches you to reevaluate your spending habits, and analyses the effect your career decisions can have on your financial profile.

Credit counseling and debt management plans are a good option if you don’t have the discipline to stick to a budget, have failed in the attempt to work out a repayment plan with creditors, or simply lost all track of mounting bills. Many credit counseling organizations are nonprofit but that’s no guarantee that its services will be free, or affordable. Most counselors offer their services through local offices, online sites, or the telephone. Universities, military bases, and credit unions, housing authorities etc also operate credit counseling programs that can advise you on managing money and debts, help develop budgets and discuss a personalized plan to solve your money problems. In a Debt Management Plan, you would deposit a certain amount of money each month with the organization, which would use your deposits to clear your unsecured debts; credit card bills, student loans, medical bills, following a payment schedule developed with your creditors.

You can also lower your cost of credit by a consolidation of your debt through a home equity line of credit or a second mortgage. These loans afford tax advantages not available with other credit facilities. However, you have to put up your home as collateral and you could lose your home in the event of inability to pay or late payments. Costs can add up too. The interest on the loan is sometimes increased by points, each of which is one percent of the total amount borrowed.

Personal bankruptcy generally is the last resort of debt consolidation, with long-lasting effects on your future credit even though it can offer a fresh start. Under the new laws, you must get debt counseling from a government-approved organization before you file for bankruptcy relief. In short, whatever help you want to get to stabilize your finances, do your homework. Find out about services and costs, and get all promises in writing. Remember to read all contracts carefully

Debt negotiation programs can be a risky option with long term impact on credit history. Your state Attorney General can give you more information about the rules and regulations.