I am considering entering a debt management program. Anyone have any advice?

I am considering entering a debt management program because I am way over my head in credit card debt. I know it may not be the best solution but it seems I keep putting it off, getting no where paying down my debt. Does anyone have advice or comments?

Debt counseling is the best way to go instead of debt consolidation (which simply means one borrows more to get out of debt).
Here is a link to the FTC approved agencies. Some may charge a small fee and may not (depends upon your situation).
This will give you breathing time to catch up

http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm
Govt approved credit counseling agencies.

Good luck and hope this helps.

Cut your credit cards up in little pieces and don't get another. Call your credit card companies and let them know you are going to transfer your debt to another credit card company for a lower rate. (This is only a threat) They will offer to lower your rate they don't want to lose your business.

You may want to approach a bank & see if you can get a loan to pay off all debts. The interest rate may be better there. In the mean time, cut up all your credit cards. Only buy what you need & with money you have.

As someone who's recovering from debt, I don't recommend credit counseling services.

For one thing, half of them are scams - you pay a fee, and there's no guarantee that your debt, your minimum payment or interest rate would be reduced. You see them advertised at the same times and places as ambulance-chasing lawyers and get-rich-quick schemes - that should tell you something about their credibility.

You are just as well off, if not more so, dealing with the creditor directly. I'm currently making automatic monthly payments out of my checking account with a reduced minimum payment and a significantly lower interest.

Because I dealt with the creditor directly, I don't have to pay a middleman, and my whole monthly payment goes towards my debt, instead of a percentage going to the credit cousnelor. Plus, I don't have to worry about missing a payment because of an administrative screw-up.

Seriously, call the credit company TODAY and get started on your plan. You'd be surprised how much nicer they are to you when you're up front about your situation.

And more importantly, take a look at your spending habits. Cut out every unnecessary item you can, including cable, magazine subscriptions, takeout food - you'd see how quickly even the little things like snacks and coffee add up.

I did this. It is a very good idea. The key is that you have to really understand what put you there. You have to change your habits, it is very easy to get back under.

Make sure you work with a reputable company. They should charge a minimal monthly fee only. They should also have the type of financial counseling that will help you manage your finances and budget. Ok, now two platitudes for you that have been helpful for me: "It is not how much you save, it is what you don't spend"(I think Suze Orman said this) and *The road to debt is paved with discount* This is to help you to be frugal, and not pseudo frugal.

why pay someone to pay your credit card. sit down and budget. it takes alot of time and boring but it really pays off. i dont like any of these debt programs. its a ripoff. go to www.ripoffreport.com to see if the company u chose is on there and u can see what complaints have been made about the company. microsoft money has a budget program. there are a few others online as well u can download. try going to the community college in your area and see if they offer free debt management classes. also try the library, banks, or community center. where i live my community center offers debt and budgeting classes. some are free and some u have to pay but not much. also even some churchs offer classes. try those before having someone else pay your debt and then in turn u owe them.

Actually, it's a very good decision. Going into such a program will not only help you to reduce and eventually eliminate debt, it can, of itself, raise your credit score. Here's a link to Consumer Credit Counseling Service (CCCS), a non profit service, for your use. http://www.cccsatl.org/

Be careful, most of them are a rip off and charge you hefty fees (which you obviouly can't afford). Try to figure it out on your own or with a friend and do it yourself. It isn't that diffficult.

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http://www.mytermloans.org
http://badcreditloans.50webs.org/loanconsolidation.html

To be honest:
Add up all your short term debt, if it is greater than 1 year's earnings, go broke.

Going broke (bankruptcy) is a big step, but because you will become credit immune for 5 years, you will learn how to PROPERLY handle your money.

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