Brad Stroh is currently co-CEO of Freedom Financial Network and Bills.com. If you would like more of Brad's articles, please visit the Bills.com information on Credit
Demand for debt counseling is at a record high; 17 straight quarterly fed rate hikes, slowing home values (harder to get a debt consolidation loan), rising tuition costs, rising gas prices, bankruptcy reform... the list of consumer catalysts into debt counseling programs just seems to keep growing. But what are your options and which program is right for you? Read on.
First, some startling statistics: there is over $13 trillion in consumer debt out there, and over $2 trillion of it is revolving. When interest rates rise, that revolving debt hits the consumer's pocket book. For example, it has been estimated that over $2 trillion of mortgage debt that is based on adjustable rates ("ARMs" or Adjustable Rate Mortgages) is going to re-adjust over the next 2 years... increasing American consumer interest fees by over $50 billion! What does it mean, it may mean that you cannot afford to pay your bills, and for many people, that means credit card debt payments are too high to afford which leads to Debt Counseling.
Debt counseling could mean a variety of things, from a traditional debt management plan that cuts interest rates and lowers monthly payments to a more aggressive negotiated debt settlement program that attacks principal as well as interest. Make sure that you sit down and do the budget analysis (http://www.bills.com/guide) and assess your monthly budget. The amount that you can contribute to paying down your debts should be the first step in evaluating your debt counseling options. If you can afford more than 2.5% of your total debt amount in a monthly payment, then credit counseling may be the best debt counseling option. If you can only afford 1.5% of your total debt monthly, then seek help from debt settlement or debt negotiation firms. If you cannot afford to make any payments, then you may want to evaluate bankruptcy in addition to your debt counseling options.
The next step in choosing a debt counseling program is to prioritize what is more important to you: your savings or your credit rating. If you just want to save the most amount of money while getting debt free as fast as possible, then debt settlement may be best. If you are looking to buy a home in the next year or two, and your credit rating is your number one concern, then you will not want to go delinquent on your bills and may want to explore a debt consolidation loan or credit counseling.
With any debt counseling program, it is important to remember that no one size fits all; make sure to shop around and find the best program and an honest and ethical company that has a solid Better Business Bureau rating before jumping in.
- Related Videos
- Related Articles
- Ask / Related Q&A
- Valuable insights on home mortgage debt help and consolidation
- How to Take the Best Credit Card Debt Help Judgment
- What to do to get proper debt help?
- Debt Help - The Easy Way Out
- 3 Types Of Debt Help Available Online - Consolidation Loans, Debt Management And Debt Settlement
- Debt Help
- Debt Help – When Things Go Beyond Control
- Debt Help: Eliminate Debts in a Hassle Free Way




"Write Your Worries On Sand..."
By: Nuruddin Abjani | 25/12/2009You feeling down? Down know what to do? Stressed? Read this heart warming, exquisite true story to get to the crux of the matter.
The Powerful Secret Your Mother Never Told You
By: Carole Hodges | 23/12/2009successful people know how to express personal power on a fairly consistent basis
In Quran: The Immorality that is a Sin and requires Repentance
By: Prof.dr. Ibrahim Khalil | 22/12/2009The Quran says: do not backbite against each other nor insult one another by names that he or she dislikes to hear; and whoever do not repent, of such immorality are evil-doers and they harm themselves with punishment in the Hereafter.
Identity Theft Prevention
By: iwalletusa | 22/12/2009Identity theft is one of the fastest growing crimes in the US and has now reached in epidemic dimension. Identity theft simply refers to a fraudulent activity in which one person steals another person’s personal information including credit card, social security card number, and passport details in order to use it for unauthorized purposes. From ordinary people, students, and employees to celebrities and industrialists have been hit by identity theft.
Tips For Un-Stuffing Your Life
By: Jeremy Myers | 21/12/2009Letting go of the stuff. Or is it letting the ego let go of the stuff. No matter, the outcome is still the same.
A Contest
By: 陈凡 | 21/12/2009if you are a modern girl, do you feel that sometimes it is very difficult to change your style of dressing without some very important clothes or decorations?
Five Simple Happiness-enhancing Techniques
By: Gen Wright | 21/12/2009Psychologists are now beginning to understand which activities make people happier. This is a young field, but some simple methods have already been shown to increase happiness in studies. Here's an overview of five such techniques.
Five Simple Happiness-enhancing Techniques
By: Gen Wright | 21/12/2009Psychologists are now beginning to understand which activities make people happier. This is a young field, but some simple methods have already been shown to increase happiness in studies. Here's an overview of five such techniques.
Options To Consolidate Credit Card Debt
By: Brad Stroh | 18/11/2006 | AdviceConsolidate Credit Card Debt When managing your existing credit cards seems overwhelming, one effective way to ease both the financial and emotional burden of the cards is to consider the option to consolidate credit card debt.
Understanding A Second Mortgage
By: Brad Stroh | 13/11/2006 | MortgageIf you're in need of additional funds and you own a home, you may have the opportunity to borrow against your home through a second mortgage. A second mortgage is another name for a home equity loan.
How To Choose A Real Estate Agent
By: Brad Stroh | 31/10/2006 | AdvertisingIf you're selling a home, you need a licensed real estate agent. It is feasible to sell your home on your own (i.e.
Debt Counseling Tips
By: Brad Stroh | 31/10/2006 | AdviceDemand for debt counseling is at a record high; 17 straight quarterly fed rate hikes, slowing home values (harder to get a debt consolidation loan), rising tuition costs, rising gas prices, bankruptcy reform... the list of consumer catalysts into debt couns
How A Reverse Mortgage Works
By: Brad Stroh | 31/10/2006 | MortgageEver wonder how a reverse mortgage works? For folks that have lived in their home for a long time, they may very well be sitting on a gold mine.
Get Your Credit Report
By: Brad Stroh | 28/10/2006 | AdviceGet Your Credit Report & Analysis It is very important to get your credit report and analysis.
Home Equity Basics Explained
By: Brad Stroh | 11/10/2006 | AdvertisingWhat is Home Equity? Purchasing a home is a huge event in anyone's life. It's an investment that, over time, will yield you a significant profit. As the years progress, the value of your home will increase.