Your options are:

• Minimum Payments

• Debt Consolidation Loan
• Consumer Credit Counseling Services
• Debt Settlement
• Bankruptcy
• 
  

 

Many universities, military bases, credit unions and housing authorities operate nonprofit financial counseling programs. Some charge a fee for their services. Creditors may be willing to accept reduced payments if you are working with a reputable program to create a debt repayment plan.

However, credit counseling organizations have faced scrutiny because of their misuse as a "nonprofit" organization. Because an organization says it is a "non profit," there is no guarantee that the services provided are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high hidden fees, or even urge consumers to make voluntary contributions that can cause more debt.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.