There are times when you incur unpaid consumer debt in three to five years. Experts would recommend that the best course of action is bankruptcy. Naturally, this does not include long-term loans like mortgages that are payable for fifteen to thirty years. Opting for bankruptcy is not an easy road, since this would make application for credit the next 10 years difficult. So, you need to weigh the consequence for the decision you do in terms of the pros and cons for a bankruptcy option.

You may need a credit counselor before deciding to opt for a bankruptcy or not. In this way, your situation can be assessed and provided you with options that might be available based on your situation. Take note that most credit counseling agencies are associated with credit card issuers and other financial lenders. This would entice them to lean toward loan rather than bankruptcy even if it is the best option.

That is why the National Foundation for Consumer Credit is available to provide credit counseling free from financial institutions biases. It is a non-profit organization that provides low cost debt counseling, financial education, budgeting assistance and other financial consumer services. Check our website www.nfcc.org for further details and to locate an office nearby. For 24-hour automated office listings, you can reach 1-800-388-2227.

Aside from basic financial credit counseling, NFCC also provides Debt Management Plans that helps lower your payments, fines or interests due. In order to pay down outstanding debt, this systematic plan would allow such reduction. All you need to do is deposit debt repayment funds with the agency each month, whilst the agency would help disperse the payment to your creditors. NFCC can help negotiate or waive financial charges and collection calls to ease the burden of your loan.