Debt Relief Blog and Resources

Updated December 31, 2019 Freedom Debt Relief or National Debt Relief? National Debt Relief is a company that specializes in debt settlement. NDR will negotiate with your creditors to reduce your total debt amount without charging a fee until after the settlement has occurred. Freedom Debt Relief provides the same settlement service. The question is: which company is better at settling debt?  In short, we think you'll be happier with Freedom Debt Relief simply because of the vast number of happy customers it has. But, National Debt Relief also has many strengths, such as its price and state availability. We've prepared a side-by-side snapshot of two of the most popular debt relief companies. If you are considering debt settlement, here's a quick look at two of the major leaders in the industry. Freedom Debt Relief vs. National Debt Relief Which is better: Freedom Debt Relief or National Debt Relief? When you compare the two debt relief companies, National Debt Relief appears to have lower fees and serves more states, but Freedom Debt Relief has higher customer satisfaction and much more debt settlement experience. At the end of 2019, Freedom Debt Relief had over 11,100 reviews with an average star-rating 4.7 stars out of 5 on BestCompany.com. At the same time in 2019, National Debt Relief had over 460 user reviews with an average star-rating of 4.3 out of 5. [For the most current stats, view Freedom Debt Relief's and National Debt Relief's profiles.] Both companies use debt settlement to negotiate a lower total debt for their customers. Both companies have considerable experience in negotiating debt. National Debt Relief has slightly lower fees while Freedom Debt Relief has a higher customer satisfaction on BestCompany.com. We recommend Freedom Debt Relief. Exactly how much does Freedom Debt Relief cost? Freedom Debt Relief charges customers 15 to 25 percent of their total enrolled debt depending on where they live. With higher debt, you will likely see higher savings. So the 20 percent average fee might actually be lower. Much like consumers must compare online quotes to find the best auto insurance companies, in order to get a more accurate estimate, you should contact Freedom Debt Relief for a free consultation. How much does National Debt Relief cost? National Debt Relief costs an average of 18 to 25 percent of the total enrolled debt. The company can usually cut your debt in half. So if you owe $20,000, National Debt Relief can negotiate it down to $10,000 and will charge you between $3,600 and $5,000. This means that you would pay between $13,600 and $15,000 instead of the original $20,000. Potential customers should know that individual cost will vary according to your credit situation, debt amount, and your creditors. Savings will vary even more because creditors are under no obligation to negotiate a lower debt amount. It is usually in the best interest of creditors to reduce the amount of your debt. In the mind of the lenders, it's better to get some of the money from debtors instead of none of it. Customers can contact National Debt Relief for a free consultation and estimate. What is debt settlement? Debt settlement is the process of settling your debts for less than the original owed amount. After a free consultation to discuss your unique financial situation, a good debt settlement company would create a program designed to fit your needs. You make payments to a special savings account for a designated period of time, typically over the course of several months. Once an appropriate sum is reached, the company will negotiate with your creditors, striving to the settle the debt for as little as possible. Once they have reached an agreement, the debt will be resolved by using the funds you have already accrued in the special savings account. Are debt relief companies legitimate?  Sadly, there are many fraudulent debt relief companies. The Federal Trade Commission warns consumers to beware of debt settlement companies that charge upfront fees, as it violates the FTC's Telemarketing Sales Rule. Just like with IRS debt forgiveness, it is critical to look for companies that are compliant with the Telemarketing Sales Rule and other FTC regulations, including being transparent about their fees, setting up realistic expectations about settlements, and alerting you about the potential consequences and risks associated with debt settlement. Which accreditations does the debt relief company have? Accreditations can provide additional assurance that your chosen company is following ethical industry practices and are provided by third-party organizations designed to help regulate the debt relief industry. The two most important accreditations are the American Fair Credit Council (AFCC) and the International Association of Professional Debt Arbitrators (IAPDA). The AFCC is an association of professional Consumer Credit Advocates; its purpose is to support consumers struggling with debt issues, to define debt relief best practices, and to push for consumer-focused legislation. The IAPDA is an organization which trains and certifies debt negotiation professionals. Any debt relief company you consider should be accredited by at least one, but preferably both of these accreditation organizations. Freedom Debt Relief has an A+ rating with the Better Business Bureau (BBB). It is a founding member of the AFCC and holds a Platinum standing with the IAPDA, which indicates that their debt consultants have been trained extensively in a comprehensive range of debt relief options, laws, legislation, and more. The company was also involved in establishing the 2010 FTC compliance rules and complies with the FTC’s Telemarketing Sales Rule. National Debt Relief has an A+ rating with the Better Business Bureau (BBB). It is a member of the AFCC and is certified by the IAPDA. The company complies with the FTC's Telemarketing Sales Rule. How long has the company been in business? Debt settlement is a relatively new industry, with few companies dating prior to the mid-90s. Companies with longer industry experience may offer more established relationships with creditors. Freedom Debt Relief was established in 2002, longer than many competitors. Its founders are Stanford business graduates. Since its creation, it has settled over $8 billion in debt for over 500,000 clients. The company resolves over 40,000 accounts a month and employs over 2,000 professionals. National Debt Relief was established in 2009 in New York City. It has helped over 100,000 clients become debt free by resolving over $1 billion in debt. What are the minimum debt requirements? Debt settlement is not right for everyone, particularly those with smaller amounts of debt. To benefit from debt settlement, you should have at least $7,500 in unsecured debt; however, there are often more suitable options for those with less than $10,000. Most companies only accept clients with over $7,500 in debt. FDR requires a minimum debt of $7,500 to enroll in its program. The company only accepts unsecured debt. NDR requires a minimum debt of $7,500 to enroll in its program. The company only accepts unsecured debt. In which states does the debt relief company operate? States have strict rules regulating debt settlement, therefore these companies are unable to service every state. It is important to see which company is available in your area. Freedom Debt Relief is available in the following locations (38 out of 50 states; as well as 3 of the 6 U.S. island territories) Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Delaware, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, New Hampshire, Ohio, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia, Washington D.C., Wisconsin, Guam, Puerto Rico, American Samoa. National Debt Relief is available in the following locations (41 out of 50 states): Alabama, Alaska, Arizona, California, Colorado, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming, Washington, D.C.   How much can I save with debt relief?  One way to measure debt settlement's effectiveness could be its overall savings. While the company can significantly reduce the amount you owe, they will also charge you fees that often average between 18 to 25 percent of your total enrolled debt. The fees are determined by a number of factors, primarily state regulations and willingness of creditors to settle. Freedom Debt Relief's average fee is 20 percent of your enrolled debt. National's fee varies between 18-25 percent of your enrolled debt. Clients who complete the program and settle their debt save an average of 30 percent (after fees).   What do customers think about the debt relief company? 2019 Freedom Debt Relief reviews reveal a high customer satisfaction. While 2019 National Debt Relief reviews on BestCompany.com have been fewer in comparison, they show a good level of customer satisfaction. Customer reviews are a critical factor when research debt companies. It is vital to compare Freedom Debt Relief to National Debt Relief reviews from a customer's perspective because customers arrive at conclusions without ulterior business motives or benefits. For example, a customer with high credit card debt may find that NDR is actually better at negotiating credit card debt than Freedom Debt Relief. However, if other customers do not read reviews, they'll end up making a poorly informed decision regarding their own credit card debt.  Real clients are simply seeking to inform potentials clients to make better decisions and can provide the most accurate feedback about the companies' services. Be sure to read multiple reviews (preferably both negative and positive) to gain a clear picture of the strengths and weakness of each company. Freedom Debt Relief reviews (2019) praise: Great customer service Great savings Provides quick savings Ability to check progress online Knowledgeable, informative Keep customers informed Kind employees who don't pressure customers into decisions Ability to check progress online Freedom Debt Relief complaints: Length of the process Creditors wouldn't negotiate with FDR Customers receiving calls from creditors Complaints about high fees National Debt Relief reviews (2019) praise: Excellent customer service Personal stories of great savings Good communication about settlement offers and negotiation status Provides customers with confidence in the company and in themselves Fast, effective settlement process National Debt Relief complaints: Some communication gaps Length of the process Failure to communicate that forgiven debt is considered taxable income Complaints about low credit scores following services   How involved will I be in the debt relief process? Though debt relief customers might be tempted to just hand over their financial reins to a debt management company, it is vital to be involved in the process from start to finish. Customers should seek not only to alleviate debt but also to nurture habits that lead to a debt-free life. When approaching a debt relief company, ask how much you can be involved in the relief process; this could be a good sign that you've found the right debt relief company. Freedom Debt Relief offers customer support and information for non-clients seven days a week. Additionally, customers can monitor their progress 24/7 through an online  Client Dashboard. They can see which debts are being negotiated next and manage account information. National Debt Relief offers customer support for current clients Monday through Friday. Non-clients can reach the company Monday through Saturday. Does debt relief affect my credit?  The goal of every debt relief or tax relief program is to help you get out of debt as quickly as possible. Depending on the condition of your credit, any debt relief program, including both Freedom Debt Relief and National Debt Relief, could negatively affect your credit. However, carrying a large amount of debt that is difficult to repay also negatively impacts your credit score. For example, debt from student loans can accumulate and increase over many years of nonpayment. So, you have two choices in such desperate situations: pay off your debt from student loans slowly, missing minimum payments and taking damage to your credit score or hire a debt relief company, settling the debt from your student loans faster while taking a hit to your credit score. While debt relief customers may experience an initial negative impact on their credit score, as debt as settled, they often see their credit score rebound. More importantly, credit scores and overall financial health improve in the long run.  We recommend looking into debt relief programs if making smaller monthly payments and getting out of debt quickly is worth a temporary hit to your credit score.  Freedom Debt Relief vs. National Debt Relief: Additional Services  Both Freedom Debt Relief and National Debt Relief have debt consolidation options available, though customers are likely better off going to a company completely dedicated to debt consolidation. A debt consolidation loan company can help you consolidate all of your monthly payments into one low monthly payment. After debt consolidation, the company will attempt to negotiate lower interest rates with each of your creditors. One huge advantage to National Debt Relief is that the company offers a 100 percent satisfaction money-back guarantee. A money-back guarantee means that in the event you are unsatisfied with NDR's services or they cannot settle your debt, you can get your money back.  Freedom Debt Relief does offer credit counseling (easier on your credit score) and additional DIY services for those who would like to get out of debt by themselves. The company also provides bankruptcy counseling. National Debt Relief offers bankruptcy counseling, debt consolidation services, and financial education resources. Freedom vs. National: Which is the best debt relief company?    Freedom Debt Relief National Debt Relief Founded 2002 2009 Total Amount Resolved $10 billion $1 billion Total Clients Enrolled Over 600,000 Over 100,000 Minimum Enrolled Debt $7,500 $7,500 Locations 34 out of 50 states as well as 3 of the 6 U.S. island territories 41 out of 50 states Average Fee 20 percent of enrolled debt 18-25 percent of the enrolled debt Average Savings Undisclosed 30 percent of enrolled debt (after fees) Availability 7 days a week Monday through Saturday Debt is not a necessary evil that's just a part of life. You can conquer debt, and a debt relief company is a great way to start. Though National Debt Relief does have slightly lower average fees and provides debt relief services to more states, Freedom Debt Relief has greater customer satisfaction, more glowing debt relief reviews, better accessibility, and has been in business for a much longer time. The final decision is up to the customer, but there's a reason Freedom Debt Relief is ranked number one for debt relief programs on Best Company: over 10,300 positive reviews from satisfied customers resulting in 4.7/5 stars. So, if Freedom Debt Relief wins over National Debt Relief, how does it compare to some of the other companies in the industry? Freedom Debt Relief vs. CareOne Debt Relief Unlike Freedom Debt Relief and National Debt Relief, CareOne Debt Relief does not disclose its rates online. CareOne Debt Relief's main service is its debt management plan, so that may be why the company is unwilling to reveal pricing information about its debt settlement service.  On the other hand, Freedom Debt Relief has years of experience with debt settlement services and has an average fee of 20 percent, an average in the industry. Looking strictly at debt settlement services, Freedom Debt Relief has more experience, likely better prices, and has thousands of positive reviews to back up its service. However, CareOne Debt Relief does have a 100 percent satisfaction guarantee.   Freedom Debt Relief CareOne Debt Relief Founded 2002 2002 Satisfaction Guarantee No Yes Total Clients Enrolled Over 600,000 Undisclosed Minimum Enrolled Debt $7,500 $7,500 Locations 34 out of 50 states as well as 3 of the 6 U.S. island territories 50 states Average Fee 20 percent of enrolled debt Undisclosed Average Savings Undisclosed 50 percent (not including fees) Free Consultation Yes Yes Freedom Debt Relief vs. ClearOne Advantage ClearOne Advantage does not have as many good reviews as Freedom Debt Relief. With more than 60 reviews, Clearone has 3.8 out of 5 stars. Freedom Debt Relief has a 4.7-star rating with over 11,118 customers reviews, an impressive feat.  Additionally, Freedom has more experience, is more transparent about pricing, and has resolved much more total debt than ClearOne Advantage.   Freedom Debt Relief ClearOneAdvantage Founded 2002 2007 Total Amount Resolved $10 billion $1 billion Dedicated Consultant Yes Yes Minimum Enrolled Debt $7,500 $10,000 Locations 34 out of 50 states as well as 3 of the 6 U.S. island territories Undisclosed Average Fee 20 percent of enrolled debt Undisclosed Average Savings Undisclosed Undisclosed Availability 7 days a week Monday through Friday Freedom Debt Relief proves through its commitment to its customers, its transparency, and its experience in settling debts why it tops our list of best debt settlement companies. Customers are encouraged to compare Freedom Debt Relief to all of the top debt relief programs to ensure that it is the right company for their unique situation. Debt Relief Looking for debt relief options? Check out the top-rated companies and their offerings. Compare Top Companies

Guest Post by Lauren Wiseman Many people make New Year’s resolutions to put their finances in order. However, the vast majority of the population doesn’t actually understand what this resolution really entails. This poses a significant problem. After all, how can you accomplish your mission if you do not know what your goals and objectives are? With this in mind, here are a few worthy financial goals: 1. Establish an emergency fund The first financial goal that everyone should have is establishing a sizeable emergency fund. You never know when something in your house might break down or someone you care about might desperately need a personal loan. Moreover, your stable employment contract might unexpectedly get terminated. Most importantly, this is one of those rare financial goals that actually gives you a sense of comfort. Just knowing that you’re covered in case things turn sour might be great for your mental health. As a rule of thumb, your emergency fund should be big enough to cover three months of your living expenses. Needless to say, this is a minimum suggested figure, while most people suggest that you may want to go for several times this figure. 2. Free yourself from debt Saving money, investing it, or simply spending it on yourself can all feel satisfying. However, paying an astronomical interest rate for longer than you should is nothing but a waste of money. Therefore, one of your first goals should be to free yourself of debt. There are several ways to embark on this project and the choice up to you. For instance, if you notice that a single credit card you own has a significantly lower interest rate than the rest, you might want to switch some of your debt to it. If you find it hard to focus with so many pending debt payments, you might want to consolidate your debts. This will help you turn several smaller debts into a single large one. Although the amount of debt will remain more or less the same, paying your debts off will become a tad easier to handle. 3. Create another stream of income People with a single source of income tend to be the most vulnerable in an unstable economy. In order to avoid this, try to create another way to earn money as soon as possible. You can rent out an extra room or a property that you own, find a side job or even start freelancing online. Freelancing options are numerous. Additionally, this is much more convenient, because you get to customize your own work hours. In other words, it becomes much easier to schedule and juggle your other responsibilities (your day job, for instance). Still, those who can’t commit to something as time-consuming as blogging or selling arts and crafts on eBay might at least learn how to make money online. This kind of boost can both help you pay off your debt a bit sooner and establish a more sizable emergency account. 4. Tackle the issue of insurance Insurance is a problematic financial goal because it is one of those rare investments that you hope you’ll never get to capitalize on. Nevertheless, this is all about taking calculated risks. Getting a comprehensive insurance plan for your old vehicle doesn’t make much sense. On the other hand, doing the same for your brand-new luxury car is a different story altogether. As for health and life insurance, you will first have to figure out your priorities. 5. Learn how to stop impulse buying Finally, one of the worst habits that all of us are susceptible to is the phenomenon of impulse buying. Many limited-time offers and special discounts deliberately create a false sense of urgency. From a rational standpoint, we may be aware that making this deal is a bad idea, yet, there’s much more to it than that. While this may seem like something too simple and obvious to discuss, learning how to stick to your shopping list and purchase only the things you need is definitely not an easy task. At the end of the day, it doesn’t really matter how much you earn if you don’t know how to handle your own finances. The most financially successful people develop good spending habits well before acquiring their wealth. If you are undisciplined financially, your profits may still increase, but so will your impulse purchases, as well as the sum needed for your three months of living expenses. You might even feel more comfortable applying for heftier loans. And if your profits are growing, your assets become more valuable and protecting them becomes paramount. Instead of waiting for a personal financial crisis to wake you up, start now to establish financial goals that provide security and peace of mind. ................... Lauren Wiseman is a marketing specialist, contributor to bizzmarkblog.com, and entrepreneur. She helps clients grow their personal and professional brands in fast-changing and demanding markets, strongly believing in a holistic approach to business.  

Being in debt is something that might feel terrible, but certainly isn't something to be ashamed of. In today's modern world, it can be difficult to avoid going into debt while you're working to get ahead in life. The same is true for celebrities! Here are eight famous people you'll be surprised to hear were, at one point in their lives, in debt as well. Presidency Bankruptcy: Abraham Lincoln Even presidency smarts can't help people avoid going into debt, it seems. Abraham Lincoln, the 16th president of the United States, filed for bankruptcy in 1833 after partaking in a failed business venture. 17 years later, his debts were paid off. The Automobile Giant: Henry Ford After two failed companies and a bankruptcy in 1901, Henry Ford bounced back as the automobile giant he is now known to be. He founded his third company and achieved long-awaited success with the Ford Motor Company in 1903. Bankruptcy for Larry Before Larry King Live Before making his turn around with his claim to fame, Larry King Live on CNN, Larry King declared two bankruptcies, one in 1960 and one in 1978. His debts piled up to $352,000. Bankruptcy After Imprisonment for Poet and Author, Oscar Wilde The acclaimed poet and author, Oscar Wilde, was forced into bankruptcy in 1895 after being sentenced to two years in prison for homosexual activity, which was illegal in England during that period. Millions in Debt for Pop Star, Toni Braxton Before recouping her pop star, millionaire status by signing a $25 million contract with LaFace, Toni Braxton was millions of dollars in debt. Braxton was forced to sell her property and assets in order to repay her $3.9-million-dollar debt, and she filed for bankruptcy in 1998. MC Hammer: Fame to Shame A life of quick fame may have been the cause of MC Hammer's growing debt, which reached $13 million before he filed for bankruptcy in 1996. Solid gold chains for not only himself but also his four pet Rottweilers may have gotten him there, but he has recouped, now juggling a life as a rapper and TV host. Marvin Gaye: Tax Problems "In His Lifetime" Prior to moving to Hawaii to work on his album, In Our Lifetime, Marvin Gaye was overcome by financial woes, tax problems, and drug addictions, fuelling his decision to lead an island life. The famous singer filed for bankruptcy in 1979. Mark Twain: Investment Gone Bad Mark Twain, the famous American author, lost the majority of his money after making a poor investment decision, and later filed for bankruptcy in 1894. He traveled Europe for four years giving lectures in order to finally repay all of his debts, and wrote some of his best work, namely Pudd'nhead Wilson and Following the Equator, after filing for bankruptcy. Knowing the stories of these famous, once rich, and re-made celebrities can give us greater insight to overcoming debt and bankruptcy. Nowadays, rich people come in all shapes in sizes. Whether made rich by YouTube or just by old-fashioned movie stars, there's always the possibility of debt. By understanding that fame and fortune aren't things that will keep debt out of your life, you can understand what the true asset you need to get out of debt: persistency. Be persistent, and forge your way to a debt-free life!

Credit card debt typically has a higher interest rate than automobile, or home loans, so racking up this kind of debt can cause serious financial strain. ReadyForZero teaches that to maintain a good credit-to-debt ratio, one should never use more than 30% of their total available credit on one credit card. There are a lot of factors that can hurt one's credit score, like missing and late debt payments. How much owed on an account, and how many accounts have balances is also negatively impactful. Credit Score Basics Starting with the basics, a credit score is a 3-digit number determined from one's credit history. It has the power to determine the financial eligibility of taking out a mortgage or loan. Credit scores also determine how low an interest rate credit holders can receive on desired loans. The higher a credit score, the lower interest rates one can typically qualify for. Credit scores typically range from 300 - 850, and according to Wells Fargo, are determined by the following: 35% based on payment history 30% is based on current debts 15% is determined by credit history 10% is allotted to new credit applications 10% is about types of current credit Credit Card Debt and Credit Scores Having high credit card debt lowers a credit score, prevents one from getting loans, and restricts new credit cards approvals. But how does the debt-to-income ratio come into play? AboutCredit explains that, "Even if your debt-to-income ratio is low, if your debt hurts your credit score, you could still be denied." The article also notes that income is not a factor in determining credit score. Higher credit card balances in relation to unique credit limits can kill a credit score. Thus, it is best to keep that relationship deeply in check. Maxing out a credit card is a sure way to decrease a credit score, fast. Credit Scores on BestDebtCompanys.com   We surveyed over 200 people on BestDebtCompanys.com to see what credit scores our visitors have. Typically, our visitors come to our website to find companies to help them out of debt, so we can assume these credit scores have been affected by debt (almost half of our visitors have over $25k of debt). Based on these numbers - 71% of the people we survey do have a credit score below 690 (690 is considered the lowest "good" credit score you can have). Only 6% of people don't know their credit score, which leads us to believe that those who are in debt are monitoring and are concerned about their credit score. Debt Reported To Collections Accounts that are reported to collections can also suffer in credit score. CreditKarma states, "The degree to which a collection hurts your credit score is generally correlated with how high your credit score is when the collection agency reports the debt. The higher your score, the more points you can lose." Medical debt is often reported to collections. How much debt one owes to collections is an important factor to consider. Minor amounts will not do as much damage. CreditKarma gives the example that if "the original debt you owed was less than $100, the resulting account in collections may show up on your credit report but it may not significantly hurt your credit score or even hurt it at all." If possible, it is always better to prevent these kinds of situations before they start, so one can keep their credit score at a decent level. To get out of debt and raise your credit score, check out our favorite Debt Consolidation companies. Sources: http://blog.readyforzero.com/how-does-credit-card-debt-affect-you-credit-score/#.V1nws1d9JlIhttps://www.wellsfargo.com/financial-education/basic-finances/financial-challenges/repair-credit/affect-credit-score/https://www.creditkarma.com/article/accounts-in-collections

To stay out of financial hardship, it is smart to pay close attention to how much income is being generated and spent. When looking into how much money one should save every month, the 50/20/30 rule is a good way to go. 50% of income should be reserved for the essentials, like food and rent. 30% should be set aside for lifestyle choices, like exercise classes, dinner out, etc. 20% of the income is set aside for priority payments, like debt, savings and retirement funds. These percentages are for one's gross, after-tax income. An emergency fund is also beneficial to have. With more than 5 million Americans unemployed for months at a time, an emergency fund can save people from going into major credit card debt. But how big should it be? Many experts in the industry recommend saving 9 months to a year in set-aside income; However, this can be a lot for people. It may be easier to start small, and save at least $100 a month, or 10% each paycheck. Even just a mere $1000 saved up can be extremely helpful when an unexpected expense arises. Anything set aside helps. Each family should determine a set emergency amount to work up to, and start getting into the habit of saving. What Are The Easiest Ways To Save Money? 1. Save Change Even though it is a simple trick, saving change and coins can add up. Extra change is frequently overlooked, but coins can add a financial bonus if they are accumulated over time. Banks will even trade coins for bills. 2. Budget Setting a budget can make all of the difference. Budgets can be used for grocery shopping, fun night outs and more. Once a specific amount has been set, stick to it. New technology and flashy gadgets can be tempting, but remember in the long run, it is better to save than spend. Don't blow the budget. 3. Download A Money Tracking App Smartphone users can download a variety of apps that help track income and spending. Apps like Mint allow users to see exactly how much money they are generating and what they are spending their income on. Users can even set budgets through the Mint app; they are sent alerts when one of their set budgets is exceeded. It is helpful to see where one's money is really going. Those who don't have smartphones can keep track of their finances with a spiral notebook or excel doc. Writing everything down, and seeing everything upfront can encourage people to save rather than spend. 4. Cut Extra Spending That extra Starbucks Latte, the latest television, and that beautiful new purse are not necessities. Cutting out even the smallest thing, like a daily scone, can add up quicker than you might think. To prevent the temptation of shopping, unsubscribe from retailer emails. Evaluate if cable and Netflix are both needed, or if one can be cut out. Cutting extra spending requires time and thought, but can truly save people hundreds of dollars. 5. Shop Smart When shopping, especially for groceries, it is a smart idea to plan ahead. Make a list, and stick to it. Shop the sales and generic brands that are less expensive. Cutting coupons can also save more money than one may think. Smart shopping is what keeps people on budget. How Much Money Are People in Debt Saving?     Not surprisingly, most of our visitors come to our site with some kind of debt (anywhere from under $10k to $100k).We surveyed over 200 people on BestDebtCompanys.com and asked them how much they are saving every month. Even though it's recommended that you save 20 percent of your paycheck each month, only 3 percent of the people we surveyed are doing that. Instead, 71 percent of people aren't saving any money. Those with debt are not able to put money aside for emergencies because they are stuck making minimum payments on credit cards that barely cover the interest. If you want to save money, but are drowning in debt, the best thing you can do is work with a credit counselor. Credit counselors help you determine if settlement or consolidation is best for your current situation. They'll help create a budget where you can pay off your credit cards and set aside a little bit of savings each month.   Links Used: https://www.learnvest.com/knowledge-center/how-much-do-i-really-need-to-save/http://www.bankrate.com/finance/savings/how-big-should-emergency-fund-be.aspxhttp://www.moneyunder30.com/change-habits-stay-out-of-debthttp://money.usnews.com/money/personal-finance/slideshows/10-ways-to-cut-your-spending-this-week/9

Collectively, around 43 million Americans have student loan debt. In fact, Americans owe around $1.3 trillion in student loans debt. For federal student loans, there are a variety of loan repayment, and debt relief plans-a lot more resources than with private student loans. However, people with private student loans can find debt relief with consolidation, refinancing, and forbearance or deferment. Debt Relief Options for Private Student Loans It is important to really understand one's private student loans, since lenders can be a bit harder to track down than with federal student loans. In general, private student loans cannot usually be consolidated with federal student loans. Additionally, lower interest rates that are available for federal student loans are not typically offered for private student loans. To get relief, one can try and negotiate with their bank. Sometimes lenders are willing to work with borrowers who are having trouble making payments. However, because private student loans are considered dischargeable, this could be tough to work out. Consolidation While more companies offer debt relief programs for federal student loans, there are private student loan debt relief options out there. As opposed to debt settlement, debt consolidation is a lot more common when it comes to student debt relief. The following companies have reputable private student loan consolidation programs: Cedar Education Lending Private Student Loan Consolidation Citizens One Education Refinance Loan Citizens Bank Education Refinance Loan Credible cuStudentloans.org cuGrad PrivateStudent Loan Consolidation Darien Rowayton Bank DEAL Consolidation Loan Independent Community Bankers of America NextStudent Private Loan SoFi Student Loan Refinancing Student Loan Network Private Loan Consolidation Wells Fargo Private Consolidation Loan Since these are private consolidation programs with interest rates from the lender (not the government), there may be additional fees. Forbearance Or Deferment Forbearance and deferment are options worth exploring. Interest will still accrue over the time period, but these could be helpful for people struggling financially. Refinancing One can also try refinancing to lower the interest rate. A good credit score, steady employment, and a decent debt-to-income ratio can make a beneficial difference when it comes to refinancing private student loans. With refinancing, one can choose a new lender with a new interest rate. Private or Federal Student Loans? When it comes down to it, federal student loans generally offer better borrower protection than private student loans. Most of the time with federal student loans, borrowers struggling to make payments can switch to an income-driven, or pay as you earn repayment plan. Federal loan borrowers can also apply for Public Service Loan Forgiveness. Federal loan types include direct subsidized loans, Perkins loans, direct unsubsidized loans, Grad PLUS plans, and Parent PLUS loans. As of now, there are no private student loan forgiveness options. Between the two, many recommend federal student loans over private student loans. Why? Because federal student loans are a lot more likely to have debt relief options, and better borrower protection.   Sources:http://www.finaid.org/loans/privateconsolidation.phtml/https://studentloanhero.com/student-loan-debt-statistics-2016/https://www.nerdwallet.com/blog/loans/student-loans/private-student-loan-forgiveness/https://studentloanhero.com/featured/looking-for-private-student-loan-forgiveness-heres-where-you-can-find-help/https://www.nerdwallet.com/blog/loans/student-loans-federal-vs-private-loans/

Your debt is overwhelming. You can no longer pay your bills and you are falling behind financially. Perhaps you receive weekly collection calls. You know there is no way for you to pay back your creditors, so you are seriously considering bankruptcy. However, before you start dialing an attorney, consider your other options, particularly debt settlement. What Is Bankruptcy? Bankruptcy is a legal procedure that reduces or eliminates debts. Eligible individuals receive court protection during the bankruptcy proceedings. Through the process, assets are either liquidated to pay off debts or the court creates a repayment plan to help the consumer pay off debts over time. There are two main types of consumer bankruptcy, Chapter 7 and 13. In 2016, approximately 62 percent of the 770,846 non-business bankruptcy filings were Chapter 7, making it the most popular type of filing. During Chapter 7 bankruptcy, your nonexempt assets are sold and used to pay creditors. After the process is complete, remaining qualified debts are discharged. Certain types of debt, such as tax and child support, are not applicable. On the other hand, during Chapter 13 bankruptcy the court works out a repayment plan, equal to the value of your nonexempt property. Once this is complete, remaining qualified debts are discharged. What Is Debt Settlement? Debt settlement is a very different process. A settlement company will analyze your debt and financial situation, often during a free consultation, and create a plan to help you get out of debt. Often, they will ask you to make monthly deposits into a designated savings account, rather than paying your creditors. The accumulating sum is used in the negotiation process. The debt settlement company negotiates with your creditors to settle your debt for a lower amount than you owe. Top 5 Things to Consider While deciding between bankruptcy and debt settlement, there are several important factors to consider. Both decisions have short-term negative consequences, but can be beneficial long term. Consider the following five things before you make your decision: Eligibility Credit Impact Resolution Time Cost Tax Consequences Eligibility The first critical factor is eligibility; not everyone qualifies for bankruptcy. Additionally, many debt settlement companies have minimum debt requirements. Before choosing your course of action, you need to determine if you qualify for either method. Bankruptcy: One important eligibility requirement for Chapter 7 bankruptcy is income. If your income is less than the median for your state and household size, you will likely qualify. In addition, your amount of disposable income is a large factor. If you have little income after taxes and necessary expenses, such as food, you may be eligible. Additionally, debt that exceeds half your income or would take over five years to pay off indicates that you are a good candidate for bankruptcy. Chapter 13 bankruptcy has different eligibility requirements. Your debt cannot exceed a certain amount, $394,725 for unsecured debts and $1,184,200 for secured debts. You also must have sufficient income to satisfy a repayment plan and be current on your federal income tax returns. Both types of bankruptcy have several additional strict requirements. If your debt was recently discharged in a prior bankruptcy case, dismissed from a case within the past 180 days, you have attempted to defraud your creditors, or you do not attend mandatory credit counseling, you will not qualify. Debt Settlement: Each debt settlement company establishes its own eligibility requirements. Most companies only work with unsecured debt. Additionally, few companies operate in all 50 states. You need to verify which companies service your state. Finally, most debt settlement companies have a minimum debt requirement. Many companies require $7,500 to $10,000 in debt. However there are some companies that require as little as $5,000. If you have less than $5,000, you should look seriously at other debt relief options, such as debt management plans or consolidation. Credit Impact Both bankruptcy and debt settlement will negatively impact your credit score and report. The severity and the length of the impact needs to be seriously considered. Your credit score affects your ability to apply for loans and may dissuade landlords from renting to you. It significantly impacts your interest rates on loans, credit cards, and mortgages. Moreover, if you apply for a job with security clearance or in a financial industry, your credit score may be an influential hiring factor. After either method, you may consider using a credit repair company to help monitor and improve your credit. Bankruptcy: Bankruptcy will greatly impact both your credit score and report. Your score could decrease by 160 to 220 points. Chapter 7 bankruptcy stays on your report for 10 years; however, your discharged debts are removed after seven years. On the other hand, Chapter 13 bankruptcy stays on your report for seven years. You pay off many of your debts over a three to five year period; these may remain on your report for longer than seven years. Debt Settlement: If your debts are settled for less than the full amount, your credit report may read "Settled" rather than "Paid in full". Additionally, part of the settlement process involves making payments to a designated savings account, rather than paying your creditors. These missed payments will decrease your score. If you are already late on your payments, the impact will be less severe; however, if you have a high score, the drop will be more dramatic. In either case, debt settlement is still less damaging to your credit than bankruptcy. Resolution Time Debt resolution is rarely a quick process. Compare the length of each option before making your final decision. Think about your future financials goals and how quickly you need your debt resolved. Bankruptcy: Bankruptcy can take a few months or years. Chapter 7 bankruptcy is the shortest option. It typically takes four to six months. In contrast, Chapter 13 bankruptcy takes between three and five years. Over these years, you make regular payments as outlined in your court-approved repayment plan. Debt Settlement: The settlement process varies greatly based on individual circumstances. Many companies, such as Accredited Debt Relief, aim to have their clients debt free in two to four years. However, speaking to a company about your specific situation will give you a more precise time estimate. Cost If you are considering these two options, then you are struggling with notable financial hardships. You want to choose the option that makes the most financial sense. Take time to calculate the cost and see which option is best for you. Bankruptcy: There are several costs associated with bankruptcy. Chapter 7 costs $335 in filing fees, and Chapter 13 costs $310. In addition, many people hire bankruptcy attorneys, with an average fee of $1,250. You do have the option to file without representation, called pro se. However, a study of 2014 Central District of California bankruptcy courts found that only 48.2 percent of pro se cases resulted in a bankruptcy discharge (released liability from debts) compared to 82.1 percent of attorney represented cases. Though legal representation offers a higher success rate, it dramatically increases costs. Finally, one of the conditions of bankruptcy is credit counseling. Depending on your income, this could range from $0 to $50. Debt Settlement: Companies typically charge a percent of your enrolled debt, though a few companies base fees on saved debt. Pacific Debt Inc. charges between 15 and 25 percent of total enrolled debt for their services, a typical fee for the industry. The range varies based on state and amount of debt. Be wary of companies that charge upfront fees. Tax Consequences Debt relief has surprising tax repercussions. Familiarize yourself with these consequences. You do not want to pay off your debt only to receive a hefty tax bill at the end of the year. Bankruptcy: Canceled debt, in both Chapter 7 and 13 bankruptcies is not included in your income. Unlike other forms of forgiven debt, this is not taxable. To report this exclusion, you will need to fill out line 1a on Form 982. Debt Settlement: When your debt is canceled, your creditor will report it to the IRS through Form 1099-C. The IRS views this forgiven debt as taxable income. Unless you can prove insolvency (your debts exceed your assets), you will be required to pay taxes on the forgiven amount. The Final Choice As you decide your course of action, be sure to consider the aforementioned factors. You first need to establish if you qualify for bankruptcy or debt settlement. Your credit score will be impacted less drastically with debt settlement. Also consider the time and cost. Chapter 13 and debt settlement will most likely take a few years, while Chapter 7 only lasts a few months. During Chapter 7, your assets will be liquidated. If you are interested in retaining your possessions, debt settlement or Chapter 13 may be better options. Finally, remember that debt settlement is often taxable; include this in your cost estimate as you weigh your options. If you decide to file for bankruptcy, be sure to find a reputable attorney. They can give you specific legal advice for your unique situation. If you decide to resolve your debts with a settlement company, compare top-rated companies. You can read reviews from real customers and compare companies at BestCompany.com.

The last thing you want your children to inherit is your unresolved debt. Unfortunately, unemployment, medical emergencies, and an unexpected recession can drain your savings and leave you with unpaid bills. The fate of your debt, after you die, largely depends on the type of debt, your state, and the overall nature of your estate. Solvent vs. Insolvent When a person dies, the deceased's total combined assets form an estate. Estates are either deemed solvent or insolvent. Solvent estates have enough money to pay off all debts and allow some inheritance for beneficiaries. Applicable assets go through a probate process. Debts are first paid off with money from the estate, then beneficiaries receive the remaining sum according to the estate plan, or law if no plan was created. On the other hand, an estate is declared insolvent when assets are insufficient to pay off all of the deceased's debts. In this case, the estate is used to pay off bills according to federal and state laws. Some creditors will be paid in full, some will receive partial payment, while other debts will remain unpaid. In most insolvency cases, heirs and remaining family members are not responsible for debt. Probate Exceptions Certain types of accounts are excluded from the probate process. Life insurance policies and retirement accounts are typically paid directly to the beneficiaries. In addition, certain bank accounts, like those set up as payable upon death, will also go directly to the designated beneficiary. However, if the beneficiary dies first, the accounts may be included in the estate. Inheritable Debt In several cases, children, spouses, or parents will be held responsible for outstanding debts. Cosigners: If you cosigned an account or a loan, you will be held fully responsible for the outstanding balance. Joint Accounts: Typically joint account holders are responsible for the remaining balance. Community Property: Several states have community property laws (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin, while Alaska is an opt-in state). In these states, the remaining spouse is often responsible for the remaining debt. Specific Types of Debt Five of the most common types of debt are mortgage, credit card, student loan, medical, and tax debt. Each type of debt has specific rules that govern how it is handled after death. Mortgage: There are three standard outcomes for mortgages. The remaining spouse or heir can choose to take over the mortgage. The Garn-St. Germain Depository Institutions Act of 1982 prohibits lenders from demanding the immediate full payment of a mortgage, in many cases. A second option is foreclosure. The bank will sell the property and collect the remaining mortgage. Finally, the beneficiary can disclaim the property, and it will pass to the next beneficiary. Credit Card: The outcome of credit card debt largely depends on whose names were on the account. If the deceased was the sole account holder, the estate is entirely responsible for the debt. No one is liable for the amount not covered by the estate. If the account had a cosigner, he or she is responsible for outstanding debt. However, an authorized user is not responsible. In community property states, the surviving spouse could be required to pay the debt. Unless an heir cosigned a card, and in some community property cases, collection agencies cannot collect money from surviving relatives. Student Loan: There are two main types of student loans: private and federal. Federal loans are typically discharged upon the death of the borrower. This type of loan often requires confirmation of death through a death certificate. Private student loans are often collected from the estate first. However, they usually involve a cosigner, who may be required to pay the remaining balance. Additionally, in community property states, the surviving spouse may also be held liable for the loan amount. However, some private loan companies offer death forgiveness policies. Medical: Like other debts, there are several different outcomes for medical debts. Often they are paid from the estate. When the estate is insolvent, some states still require surviving spouses to pay part or all of the debt. Sometimes a spouse will sign a guarantee of payment ensuring that medicals bills will be paid even if the estate is insolvent. Finally, in community property states the surviving spouse is usually held responsible for medical bills. Tax: There are several different rules governing tax debt after death. The statue of limitations for federal taxes is ten years; ten years after the assessment date the IRS can no longer collect owed taxes. Prior to ten years the government can still collect taxes, even after death. Unpaid personal taxes are paid from the estate. However, if a tax return was filed jointly, the remaining spouse will still be responsible for the taxes, even if the estate is insolvent. Deal with Debt Now There are several solutions that you can use now to deal with your debt. One option is debt consolidation. You can get a free consultation and discuss your financial situation with a credit counselor. Companies, such as Consolidated Credit, will help you create a debt management plan and consolidate your debt into one, lower monthly payment. They negotiate with your creditors for lower rates. Through this process, you can eliminate your debt and help ease your family's financial burden after you are gone. BestCompany.com has ranked and reviewed top debt consolidation companies. Read real reviews and choose the one that best fits your needs here. Prepare for the Future Now is the best time to plan for your family's future. It is important to understand the laws that govern unpaid debt in your state, especially if you live in a community property state. In addition, you need to understand the nature of your accounts. Joint account holders and cosigners are often held responsible for debt. Discuss your financial situation with an attorney. Find out if any of your assets will go directly to your designated beneficiaries. Ask about probate laws in your state. Once you understand the laws, you can plan to leave your family in the best possible financial situation. For more information on what happens to debt after you die, check out SproutCents's article.

Debt is an ever increasing part of life in America. Most consumers carry some form of debt, whether it be credit card, mortgage, auto loan, or medical debt. How does your debt compare with the rest of America? If you find yourself struggling to pay your bills, debt settlement or consolidation may be a great option. BestCompany.com compares companies to help you determine which one will best meet your needs. Check out the top-ranked debt settlement companies such as Freedom Debt Relief, Pacific Debt, and Accredited Debt Relief. Also, compare the top-ranked debt consolidation companies such as Consolidated Credit, DebtGuru, and DebtWave Credit Counseling. Read real reviews and find the best debt resolution method to fit your needs.   Sources: https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2017Q1.pdf http://fortune.com/2017/02/19/america-debt-financial-crisis-bubble/ https://studentloanhero.com/average-credit-card-household-debt-statistics/

There are very specific circumstances under which you should consider debt consolidation: number of creditors and interest rates are just a few of those circumstances. With so many different debt relief options, it can be hard to know which solution is right for you and your needs. One available option is debt consolidation, which is the process of combining debt from multiple creditors into one lower monthly payment (often through a debt management plan or a personal loan). Debt consolidation is beneficial because it typically results in lower interest rates and lower monthly payments. Working with a debt consolidation company may help you take control of your debt. Take this quiz to find out if you are a good candidate for debt consolidation. How Does Debt Consolidation Affect My Credit Score? Debt consolidation doesn't affect your credit score nearly as much as debt settlement or bankruptcy. Though extremely effective, both debt settlement and bankruptcy will greatly reduce your credit score, making it nearly impossible to make future large purchases for the following few years.  Debt consolidation is more suited to those who aren't yet being hassled by creditors, though there are exceptions. Because you are seeking to pay your debts instead of seeking a settlement, you are protecting your credit score.  You can actually build your credit score through a debt consolidation loan if you make the payments on time. A debt consolidation loan will replace the entirety of your different accounts with creditors. This gives you just one easy monthly payment to make. After your debts have been consolidated, a debt consolidation company will try to lower the respective interest rates with your creditors. One payment with one low-interest rate is easier than 5 payments with differing interest rates. Is Debt Consolidation a Good Option? Yes. But it completely depends on your financial situation. There are better options than debt consolidation, but only if you have the means to take them. The rule of thumb for using debt consolidation is this: if you have multiple debts with high interest rates and are worried that you will soon be unable to make payments, you should consider debt consolidation. As far as debt relief options go, you should consider them in the following order: Credit Counseling (if you have the financial means) Debt Consolidation (if you are running out of money) Debt Settlement (if you are out of money) Bankruptcy (only if a debt expert tells you to) Credit counseling will work just fine for those who are confident that they will be able to get out of debt by themselves.  But for those with a less fortunate financial situation, debt consolidation and debt settlement are great options. What Are the Best Debt Consolidation Loans for Bad Credit? Debt consolidation companies are judged according to customer reviews, their ability to consolidate debt and negotiate lower interest rates. Companies can generally provide estimates for pricing, additional fees, and post-consolidation interest rates. Consolidated Credit Consolidated Credit has helped over 5 million customers with debt. It is one of the largest credit counseling companies in the nation. Consolidated Credit does not disclose its projected interest rates after reduction but is upfront about pricing. Average fees per month at Consolidated Credit are $0-69/Month. The company also has an upfront cost of $0-49. The company is highly rated on BestCompany.com. DebtWave Credit Counseling DebtWave Credit Counseling offers credit counseling and debt consolidation services. Many of the company's financial education resources are free and available online.  The company claims to be able to reduce your interest rates down to one interest rate of 7.5 percent on average. DebtWave Credit Counseling costs $10-49/Month and has a one-time, setup fee of $50.  Accredited Debt Consolidation Accredited Debt Relief's debt consolidation program is designed to help customers achieve lower interest rates with their creditors. The company also provides debt management, bankruptcy counseling, and credit counseling services. Customers can expect to pay between $10 and $40 per month. There is also an average upfront cost between $0 and $100.