If you are attempting to simply manage your debts some advice would be to look into a debt management plan.

What is a Debt Management Plan?

Debt Management Plan

A credit counseling agency works with your creditors to lower your interest payments on your unsecured debt so you can pay off your debts sooner.  You pay the credit counseling agency and they pay your creditors?

How much sooner will I pay off my debts?

A Debt management plan typically lasts for 3 to 5 years.  This is a big difference from the 20 to 35 years it typically takes if you just paid your minimum payment.

How do I know my creditors are being paid?

Every month you should receive a statement of how much you’ve paid and your remaining balance.

Will debt management hurt my credit score?

Because your creditors are typically getting 100% of the money you owe them there should be no effect on your credit score.

Can I use my credit cards while on DMP?

Typically no, however sometimes they will let you have an emergency card.  The objective is to get you to stop using the cards and use cash.

Top Questions to ask your Debt Management Plan

1.      What do you do exactly?

You will want to make sure you find a DMP provider that has counselors that will take a look at your entire financial picture and help you develop a personalized plan to get you out of debt.

2.      How are your counselors trained?

To get an unbiased opinion of what may be best for you try to work with counselors that are not affiliated with creditors.

3.      Are you licensed in my state?

Most states have legal requirements to be in the DMP business.

4.      Is there a formal (written) agreement between you and the DMP

Don’t accept any verbal promises, get everything in writing

5.      What do others think about the company?

Check with the BBB and Attorney General of your state to see what others think of the company.                                                                    There is nothing wrong with the DMP provider getting paid for their services but you should know what                                                    there are upfront.  There are non profit companies that may be able to help you for free.

For more info go to:

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre38.shtm