Free credit card debt consolidation is available from a non-profit debt counseling service. It is possible to get a session with a credit counselor for free in order to improve budgeting or identify the most appropriate debt relief program.

Many consumers allow personal debt problems to continue for too long before seeking help from a suitably qualified professional. The earlier help is sought, the easier it is to turn someone’s financial situation around.

Non-Profit Debt Counseling

A fundamental part of free credit card debt consolidation is a financial review. It is essential that ways are sought to establish affordability through either a reduction in personal expenditure or identifying a way to increase disposable income.

This can be achieved by finding cheaper ways to achieve the same objective. For example, using an online price comparison service to trawl the market for a cheaper utility or insurance provider. Others are advised that taking a part-time job could provide sufficient income for the purpose of paying-off debt.

Free Credit Card Debt Consolidation

After a budgetary analysis, a non-profit debt counseling service will help the client to assess whether this is sufficient to restore financial parity. It is believed that better budgeting is sufficient for up to 40% of clients.

If financial difficulties cannot be addressed through improved financial management alone, debt relief programs will be discussed with the client. The two most viable options are Debt Management Plans and debt settlement programs.

Debt Relief Programs

This is the point where free credit card debt consolidation is no longer free. If a non-profit debt counseling service hasn’t provided a full and comprehensive budgetary analysis prior to offering a Debt Management Plan or debt settlement program, seek advice from another service.

Both debt relief programs charge approximately 15% of each monthly contribution as a fee. This means that if $300 is contributed towards a plan, $255 will be disseminated to creditors. The $45 will cover the administrative costs associated with managing the Debt Management Plan or debt settlement program.

Debt Management Plan

This debt solution does not involve a debt write-off. However, most creditors are prepared to freeze further interest payments and charges on unpaid credit card debt in return for an affordable monthly payment. All creditor contact is taken care of by an intermediary.

A Debt Settlement Program

Up to 50% of unpaid credit card debt can be written-off. The amount that remains is cleared over a period of 12 to 36 months. It may be possible to extend a plan, but it is not advisable as it reduces the likelihood of creditor acceptance.

It is important to seek free credit card debt consolidation from a non-profit debt counseling service at an early stage in order that any budgetary help tendered can be effective. It isn’t the end of the world for those who have delayed in receiving expert assistance as there are debt relief programs available to help with paying-off debt.