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Dos & Don’ts of a Payment Plan

The Kaplan Group

Are you offering collateral? How will this plan affect your credit rating? DO consult with a bankruptcy attorney or credit counselor. For personal debt, we recommend you talk to a credit counselor first. Does the payment plan you’re agreeing to have interest built in? What happens if you miss a payment?

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Determining Your Debt-to-Income Ratio

Debt Guru

Or you resorted to a loan using your car as collateral. your high-interest credit card balances one at a time using “snowball” or “avalanche” tactics. If you end up in the mid-to-high debt range, it might be wise to consult a credit counselor for advice tailored to your specific situation.

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10 Common Questions About Bankruptcy

Debt Free Colorado

Meeting with a credit counselor should be your initial move if you indicated “yes” to a number of the aforementioned inquiries. Do not use credit consolidation businesses that are marketed on television or online. Department of Justice’s list of accredited credit counselors.

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8 Ways to Consolidate Credit Card Debt 

Credit Corp

With this method, you’re essentially taking out a secured loan and using your home as collateral. Home Equity Lines of Credit (HELOCs) Similarly to a home equity loan, a HELOC uses your home as collateral to secure a loan. Pros It allows you to pay off credit card debt within three to five years.