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Below are some of the different options available to help reduce, consolidate, negotiate, or manage your current debt as well as some helpful facts.

Debt negotiation
Debt negotiation is for individuals who have lost the ability to pay the minimum payments required by their creditors, and do not want to file for bankruptcy. The goal is to offer a cash settlement on the balances owed. This is advantageous for the creditor because he may be able to settle past due accounts for significantly less than face value. Debt negotiation does pose risks, such as sending accounts to collections, judgments, and wage garnishments. It also may negatively impact an individual’s credit rating.

Debt management plan (DMP)
A DMP offers significant interest and time savings and provides you with a plan to repay your debts in five years or less. You may be able to consolidate all unsecured monthly payments into one easy payment. The DMP is not a debt consolidation loan where the equity in your home is used to pay down your debt.

Settlement service
A settlement service is a negotiated agreement with your creditors to pay back a portion of your unsecured debt. While settlement can offer monthly payments up to 70% less than what you're paying today, it can have a negative impact on your credit.

Find out more about a program that can help you achieve a debt-free lifestyle by filling out our online application. You will then be provided with a free, no-obligation consultation that will give you more information about a service or program for your unique needs.

Unsecured debt
Unlike a mortgage or car loan, credit card debt is considered "unsecured" debt. Since there is no collateral to collect if you default, a credit card company has the right to sharply increase your interest rate if you are late with even a single payment. In some cases, interest rates can more than double, causing many with high balances to pay much more for the price of using unsecured debt over the long-term. Debt.com can match you with a company that may be able to assist you in managing your unsecured debt.

Consumer debt facts
According to the Consumer Federation of America, 80 percent of American households have at least one credit card. Out of that number, 60 percent of consumers carry a balance each month. TransUnion, a credit reporting bureau, estimates that the average American has more than $5,700 in credit card debt, although some agencies report this number to be as high as $10,000 per household. With debt at this level, it is easy to see how even the most responsible person facing changed circumstance, such as the loss of a job, could experience financial crisis from extremely high interest rates or unsecured debt.