Wouldn’t it be nice to be able to get debt help for free? Unfortunately, whether you use a non-profit debt management organization or a for-profit debt settlement service, neither will be free. In fact, it is highly possible that the non-profit agency will be more expensive from a monthly payment standpoint. The reason for this is the nature of the two types of debt consolidation programs is very different.

Debt Settlement

Although debt settlement companies are in fact for-profit entities, they work on behalf of the consumer to save them as much money as possible off their credit card balances. Through negotiation, clients in debt reduction programs like this one can save as much as 50 percent off their outstanding debts. Since the actual debt can be reduced it is the fastest and least expensive way to get debt free without filing bankruptcy.

Debt Management

Credit counseling, on the other hand, attacks your interest rates. Although these agencies are non-profit, they will still charge a fee (in most cases), and your monthly payment can be higher than one in a debt negotiation program because you are expected to pay the full debt back, plus interest over 4 to 5 years.
The True Meaning of Financial Freedom

Being totally debt free is a lifestyle choice. The underlying value of being financially free is it is the one true way to be independent. After all, with credit card debt and other financial obligations to pay each month, one does not really have a choice about what to do with their life. Instead they are left making decisions in order to make their monthly payments, pay off their debts, and ultimately, sacrificing part of their freedom in the process. It is all about having complete control over your life.
Credit cards, more so than other debts, are a major bane on your financial independence. The reason is simple: not only can the credit card companies require payments each month if you owe them a debt, but they can also adjust the terms at any point, which only further hampers your financial freedom.
For many Americans the true ideal is to be completely debt free, earning a high income, and working for themselves. In this scenario, a person is truly financially independent because they are answering to no one.

Credit Card Debt Free Questions

I heard that the government offers debt assistance grants. Is there really such thing as government money to pay off your debt?

Unfortunately, this is not true. The government does offer bankruptcy as a way to get out of debt, but that comes at a price and isn’t exactly “free money.”

What is a “Debt Free and Prosperous Living” system?

This refers to a debt elimination program authored by John Cummuta. Like other plans, its goal is show people how to become credit card debt free. In the words of Cummuta, the true aim of the program is to help people “achieve, IN AS SHORT A TIME AS POSSIBLE, a situation where you own your home and your car(s), you have NO installment debt — and you have enough money in investments that you can live off the interest.”

Have you ever heard of a company called Debt Free America? I have been contacted by them in regards to a free debt management program. I am choosing between them and Freedom Debt Relief. Which one do you suggest I use?

The optimal solution depends on your situation, but it is a good start to check out as many companies as possible about your options to determine which the right fit is. Debt-Free America offers a non-profit debt counseling program, whereas Freedom Debt Relief specializes in debt settlement and is for-profit. Make sure you’ve done your research before choosing either one, and feel free to use PayingPaul.Com to get matched with another company and compare your choices. You can also check out our debt reviews.