HOW TO GET OUT OF DEBT - 2008

HOW TO GET OUT OF DEBT Fast - 2008

• Contact a CCCS (Consumer Credit Counseling Service)
  

• Make sure they are affiliated with NFC (National Foundation for Credit Counseling)

• Show them all of your finances; Credit card statements, mortgages, pay stubs, loans, etc.

• The counselor will evaluate your living expenses, construct a budget and outline what bills you pay first. This is called Priority Pay.
  

• Priority pay #1 are your living expenses; food, housing, child care, medical, and other housing needs. The goal is to keep your home life stable.

• Priority pay #2 are your secured payments; Cars, co-signed loans, collateralized loans, etc.

• Priority pay #3 is your credit card debt .

• The agency will contact each creditor to get concessions on your debt, lower your interest rates, dismiss late charges and/or over limit fees.
  

• In exchange, you must agree to close your credit cards.

• A payment schedule for creditors is determined.

• A check goes to the agency each month to pay creditors.

• Credit card payments are structured so that you are out of debt in 60 months or less.