Understand how credit counseling works. How credit counseling can make paying off credit card debt easy, affordable and stress free.

Who needs credit counseling? We suggest anyone with over $10,000 of credit card debt, current with their payments but struggling to pay more than the minimums is a good candidate for counseling.

The credit counseling process. A credit counselor begins the process with some simple intake questions such as marital status, number of people in household and what the client’s goals are. Next, we pull their credit report. This is a soft pull; therefore, it will not affect their credit. Now, the counselor will review liabilities. This includes any mortgages, car loans, credit cards, student loans, personal loans or any other accounts showing a balance. Next, the counselor will confirm the balances and the monthly payment amounts with the client. In some cases, we may need to obtain the interest rates on accounts from the client over the phone.

Recommendations
One of the recommendations might be enrolling into a debt management plan. On this plan, the client usually receives lower interest rates and lower payments. As a matter of fact, last year, the average client had their total payment decrease from $915 to $694 on our program. That’s a 24% decrease payment for our average customer. They also saw their average interest rate fall from 23% down below 7%.

Credit Effect
A Debt Management Plan typically has a neutral effect on your credit. You might see your score initially go down because your accounts get closed. For people that are already maxed out on their cards, they probably don’t see much change in their score at the beginning since their score is already on the lower end. But over time, as long as payments are being made on time to all accounts and new accounts are not getting opened outside the program, you should see your score gradually increase. A recent study at DebtWave showed the average client’s scores increasing about 15 points per year.
But we don’t recommend focusing so much on your credit score as a good credit score will ultimately lead you to acquiring more debt. If you have a large amount of credit card debt, focus on paying it off and nothing else. Learn to live within your means! Spend less than you make. Become Debt Free and stay that way!

Debt Management vs. Debt Settlement
A Debt Management Plan often gets confused with Debt Settlement. These plans are very different so it’s important to know how they work. A Debt Settlement Plan requires you to starve your creditors of payments for months and months and sometimes years. This of course can ruin your credit. Once the accounts are severely delinquent, the creditors will settle for about 50% of what you owe. The debt settlement company will collect monthly payment from you but won’t disburse payments until you’ve saved about 50% of one of your debts. Not only do you need to be cautious of the credit effect, but you need to understand the tax implications as well. Whatever amount of debt is forgiven will be considered taxable income. So let’s say you have $10,000 of debt and you successfully reach a settlement for only $4,500. The $5,500 debt that was forgiven becomes taxable income. Expect to pay 20-25% to Uncle Sam, so around $1,200 will be due to the IRS. And you may get sued by creditors along the way. When you fall that far delinquent, some creditors may take action to try to garnish your wages. We would avoid this debt settlement program unless you absolutely cannot afford payments on your own or the payments on a debt management program.

What to expect after enrolling?
The enrollment process consists of you paying a start-up fee which is usually around $50-$99. That amount varies depending on the state you live in. Once the fee is paid, the credit counseling agency will then contact all your creditors by sending them what are called “proposals”. Most of these proposals are sent electronically but some creditors still live in the ice age and require these to be sent by mail or fax. Although, each creditor varies, most of them reply within a week with an “Accepted” or “Declined”. DebtWave usually has an 85-90% acceptance rate with the creditors. Now, when a creditor declines the initial proposal, most times it can be fixed. Some of the more common reasons for decline include the balance was incorrect and they want a slightly higher payment, the account number was incorrect, the name on the account doesn’t match or the account is already under a hardship plan. Regardless if the proposal has been accepted by your creditors, DebtWave will debit your payment and disburse the payment to your creditors. You have the option to make ACH payments weekly, bi-weekly, semi-monthly or monthly with DebtWave.

ABC News’ Perry Russom spoke with senior writer for Nerd Wallet Sara Rathner about why credit card debt continues to rise and ways to lower your balances.

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Chapters
00:00 Subscribe!
1:07 $60,000 Debt
2:27 Your Comments
2:59 Just File Bankruptcy
4:21 $220,000 Pool
5:38 Comment
6:03 $25,000
7:05 Not Caring
8:50 Examples
11:19 Comment
11:41 $170,000
12:25 Afterpay
13:00 Living My Best Life
14:26 Optimal Credit Card Customer
15:40 Comment
15:53 Debt
18:04 Influencer
19:14 Sports
20:15 Shopping
21:47 Store Credit Cards
23:13 Gen X Course Sellers

#money #finance #debt

Drowning in credit card debt? Learn how a credit card debt consolidation loan can simplify your payments, lower your interest rates, and help you finally become debt-free. Discover the pros, cons, and smartest ways to use this strategy in your favor.

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Video Chapters:
00:00 – Intoduction
00:37 – What is a credit card debt consolidation loan?
00:58 – What is the goal of a credit card debt consolidation loan?
01:12 – How do credit card debt consolidation loans work?
01:51 – How to be successful with a credit card debt consolidation loan
02:25 – Pros of a credit card debt consolidation loan
03:26 – Cons of a credit card debt consolidation loan
04:58 – Is a credit card debt consolidation loan right for you?
05:46 – Alternatives to credit card debt consolidation loans
07:17 – How to get a credit card debt consolidation loan

Are you buried under multiple credit card balances and feeling like you’re never making progress? You’re not alone — millions of Americans are trapped paying 20–30% interest every month. But there is a smarter way forward. In this video, we break down everything you need to know about credit card debt consolidation loans — your potential path to financial freedom.

???? What You’ll Learn in This Video:
? What a credit card debt consolidation loan actually is
? How debt consolidation loans work step-by-step
? The real pros and cons of using a loan to consolidate debt
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? The top alternatives (balance transfers, debt management plans, home-equity loans, and more)
? How to avoid the “debt rebound” trap and stay debt-free for good
By the end, you’ll know exactly whether a personal loan for debt consolidation is right for you — and how to compare lenders safely to get the lowest possible rate.

???? Why People Choose Credit Card Debt Consolidation Loans
If you’re juggling multiple high-interest cards, a single debt consolidation loan can simplify your finances. You replace several minimum payments with one fixed monthly payment, usually at a much lower interest rate. That means less money lost to interest and a clear end date for your payoff.
Average credit card APR: ~24%
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Savings potential: hundreds or even thousands of dollars in interest

?? Before You Apply
Debt consolidation isn’t magic — and it’s not for everyone. You’ll still need discipline and a solid plan. Lenders will check your credit score, income, and debt-to-income ratio before approving you. If your credit is weak, consider credit-union loans, secured loans, or a debt management plan through a nonprofit agency.

Avoid these common mistakes:
? Taking a longer loan just to lower your monthly payment (you might pay more overall)
? Using the loan to pay off cards, then running them back up again
? Ignoring origination fees and total APR when comparing lenders

???? Who a Debt Consolidation Loan Is Best For
?? Borrowers with good to excellent credit who qualify for a lower rate
?? People with steady income who can handle a structured payment
?? Those with moderate debt ($5,000–$50,000 range) looking for simplicity
?? Anyone ready to break the cycle and make real financial progress

???? Explore The Yukon Project Marketplace
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#DebtConsolidation #CreditCardDebt #PersonalLoans #DebtRelief #FinancialFreedom #DebtPayoff #CreditScore #MoneyTips #DebtManagement #DebtFreeJourney #PersonalFinance #YukonProject #ConsolidateDebt #LowerInterest #PayOffDebt #SmartMoney #DebtHelp #FinanceEducation #DebtSolutions #BudgetBetter

If you’re dealing with debt collectors or original creditors and wondering how to negotiate a settlement amount, this video is for you! With years of experience and millions of dollars in settlements, we know the secrets to getting the best deal. Learn how to navigate the process and find out what percentage most original creditors start at. Don’t miss out on this valuable information – subscribe to our channel today!

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Americans are carrying more than $1.2 trillion in credit card debt, and for a lot of people, it’s not from splurging. It’s everyday stuff: car repairs, medical bills, groceries. And if you only make the minimum payment, that debt can grow exponentially, sticking around for years.

The average credit card interest rate today is close to 20%, nearly doubling since 2010. So what’s driving these high rates?

Part of it is the broader economy. When the Federal Reserve raises rates to fight inflation, credit card APRs usually go up too. But that’s not the whole story.

Credit cards are unsecured loans, meaning there’s no house or car to repossess if you don’t pay. And Americans have become more and more reliant on credit cards as wages stagnate and health care costs continue to rise.

Read more about how credit card interest rates are impacting everyone:

Why did my interest rate go up on my credit card? | Bankrate https://www.bankrate.com/credit-cards/news/what-to-do-after-card-apr-increase/

Why are credit card interest rates so high? | Nerd Wallet https://www.nerdwallet.com/credit-cards/learn/credit-card-interest-rates-high

Why is your credit card rate so high? | Wharton https://knowledge.wharton.upenn.edu/article/why-is-your-credit-card-rate-so-high/

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Credit card debt in 2026 has hit record highs and the confessions keep getting worse. In this video we react to real people revealing their credit card balances, from five-figure nightmares to six-figure disasters, and break down why the numbers are so much more dangerous than they look. With interest rates sitting at levels that make minimum payments almost meaningless, millions of Americans are trapped in a debt cycle designed to keep them paying forever. We look at the real math behind what happens when you only pay the minimum, why credit card companies love customers who carry a balance, and what the explosion in consumer debt reveals about the true state of the American economy. If you think your balance is bad, wait until you see what others are carrying and what the banks are not telling any of them.

1. If you are only making minimum payments on your credit cards right now, do you actually know how many years it will take to pay off your balance at current rates?
2. Why do credit card companies keep raising your limit even when you are already struggling to pay what you owe?
3. What does record-breaking credit card debt tell us about where the US economy is actually headed in 2026?

subscribe at: https://edwardseconomics.com

#creditcarddebt #creditcarddebt2026 #debtcrisis #creditcards

additional tags: credit card debt reaction, debt confessions, insane credit card debt, credit card balance, debt compilation, minimum payment trap, how to pay off credit card debt, credit card interest rates 2026, consumer debt crisis, paying off debt, debt free journey, credit card mistakes, financial mistakes, credit card debt stories, debt payoff, average credit card debt, getting out of debt, credit card crisis, personal finance 2026, money mistakes, debt trap, credit card debt compilation, americans in debt, credit card reaction, debt reaction

Ever feel like your credit card balance is playing games with you? You pay every month…and somehow, it’s still sitting there ????

@ACCreditCounseling partnered with The Budgetnista to share how our nonprofit, NFCC-member agency helps people manage credit card debt with personalized guidance — not quick fixes. You’ll speak with a certified counselor (for free) who can review your full financial picture and help you create a realistic plan.

Debt doesn’t define you. You’ve still got options.

Learn more at https://www.consumercredit.com/budgetnista/?ODSource=budgetnistayt

#DebtFreeJourney #ACCC #TheBudgetnista #CreditCardDebt

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Compilation Channel @TheZacRiosShow
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Chapters
0:00 Subscribe!
0:50 Going Through Each Card
2:18 Your Comments
3:33 $1,000,000 Million In Debt
5:40 Comment
5:50 Things That Got Me Into Debt
7:28 Comment
7:49 $30,000 In Debt
9:25 Not Paying Debt Off
11:34 Selling You Something
12:19 Comment
12:30 Worst Decision
13:18 How Much Debt Do You Have?
14:54 Interest
15:44 Minimum Payments
17:17 Credit Card Scheme
19:09 Not Taking This Seriously
20:10 Lost Cause
21:43 What I Was Buying
23:15 Not Checking Your Transactions
24:38 Comment

#money #finance #debt

Financial educator Ross Mac breaks down record credit card debt levels and outlines a simple fix for overspending on ‘The Bottom Line.’ #fox #media #breakingnews #us #usa #new #news #breaking #foxbusiness #thebottomline #economy #finance #debt #credit #money #inflation #interestrates #spending #consumer #america #financialeducation #budget #markets #business #economicnews #personalfinance

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