r/Debt • u/konoe44 • 3d ago

Debt Relief Programs? Any advice?

Hello, I was looking to see if anyone had any suggestions on a specific debt relief program they have used or heard good things about?

I have about $50K high interest debt across multiple credit cards and personal loans. I made a lot of mistakes and poor judgment calls.

When I broke down where I stand with making payments on everything…I realized I’m in the hole each month. I’ve been living paycheck to paycheck check to pay check for a long time and I would really like some relief to be able to start saving again.

5 Upvotes

100% Upvoted

3 comments sorted by

1

u/CIAMom420 3d ago

If you’re living paycheck to paycheck with $50k in high-interest debt and can’t claw down your debt, you need to contact a bankruptcy attorney.

1

u/attachedtothreads 18h ago

 I would contact the non-profit debt management organization the National Foundation for Credit Counseling (NFCC). The NFCC has a program where you can enroll your cards to reduce your interest rate and get them paid off faster in exchange for closing them. There is also a small monthly of $5-$10/account you enroll and a one-time setup fee of $50-$75. You pay your bills in full and never miss a payment. Your credit score will go down initially, but should increase as it's paid off.

Some cons: if you miss a payment, you'll lose the benefit of reduced interest rates and the interest returns to the original numbers.

During the time you're enrolled in the program (generally 5 years, but can be less), you'll be unable to open another credit card. If you do, then you're kicked off the program. Y

You can keep a credit card open in case of emergencies, but figure out how you're going to be able to afford a large purchase (car repair, tires, etc.) without having access to a credit card. Ask them if you're able to take out a loan during the repayment period.

Not all card companies work with the NFCC.

You can also ask your credit card companies for a hardship program where they reduce your interest rates in exchange for freezing your account. No guarantees that they'll do this and some will only work with the NFCC.