If your over your head in debt and can't afford your monthly payments, a certified credit counselor may be the right option for you if you have bad credit.
Unlike debt consolidation loans which are very hard to obtain with bad credit, a certified credit counselor can enroll you in a debt management plan with bad credit. This enrollment will allow them
to negotiate with your creditors to lower your interest rates and monthly payments.
Every month, you will make one scheduled monthly payment to the debt management plan. Upon receipt of your payment, your money will be disbursed to each of your creditors for the agreed upon amounts.
You will then continue to receive credit card statements as usual from your creditors.
While enrolled in the debt management program, your monthly payment amount remains the same. As each credit card gets paid off, the additional money is applied to the balances on the remaining credit
cards and will help you pay off your overall debt faster and help you to restore your bad credit over time. Throughout your time on the program, your counselor will contact you to answer any
questions that may arise about your financial situation.
There are many non profit credit counselors and debt management programs available and may be a better choice than debt consolidation loans with bad credit to save you money in interest and lower your monthly payments.