Can I enroll in a debt consolidation program?

Yes you can include your credit cards in the debt consolidation program but you cannot include the car loan because it is a secured debt.

Most debt management plans require you have at least $10K in unsecured debt.
What's your credit like? For $7000, you might try settling the accounts yourself.

I was a credit counselor for Money Management International for a couple of years until recently and enrolled a lot of people in debt management programs. I can't say enough good things about the benefits of a debt management program. A full balance pay off is the right thing to do IF you can afford the payment after covering higher priority expenses in your budget. Unsecured debt will always be the lowest priority and nobody is going to argue that. The payment will almost always be less than it was, and often times very much less. The interest rate will be dramatically lower which is why the balance pays off so much quicker. At Money Management International, the credit counselor will explore your options for handling your debt, and make a recommendation. If a DMP appears to be your best option, they will explain why. They will do a pay off forecast to give you the exact amount of your payment, for how many months (it will always pay off in 5 years or less, no matter how much debt you have), and how much money you will save in interest in the program. Everything is legitimate and straight forward. Out of the thousands of creditors Money Management International works with, there are only a handful that require a minimum balance to be eligible for the program and in those cases the smallest minimum $500. I'm not here to promote Money Management International because I don't work for them anymore but I do know that they are a legitimate credit counseling agency with a very good cause. If your intention is a full balance pay off, a debt management program is the best way to go, as long as you don't mind closing the accounts you enroll. It's all about getting out of debt and moving forward with financial freedom. You will earn good payment history during the full course of the program and when you finish the program you will have no debt and excellent credit. You may see an initial negative impact on your credit score when you close the accounts but it's a small price to pay for saving thousands of dollars in interest while you're paying off your debt. Monthly fees range from nothing to $40, depending on ability to pay, how much debt you enroll in the program, the state you live in, and a few other factors, but this will be a small fraction of what you'll save in interest over the long haul.

Hi Kay12,

it's true that you can't consolidate your car loan with the help of a consolidation program. However, you can consolidate your credit cards as they're unsecured debt. Since the outstanding balance is $7000, why don't you try consolidating the yourself with the help of a balance transfer method? In this method, either you take out a new balance transfer card or transfer your remaining balance on the card with the lowest interest rate. however, before transferring your balance, first check whether or not you have enough available credit limit on your lowest interest card. However, you might have to pay a balance transfer fee.

If you're able to consolidate through balance transfer method, then you'll save a considerable amount each month with which you can repay be current on your car loan, too.

One last thing - if you're opting for a new balance transfer card, check how long the lowest rate is valid and make sure you repay the entire balance before the date as otherwise you'd have to pay quite a high interest on the remaining amount.

All the best for becoming debt free :-)

Oh please...people who are coming to these boards do not have $7000 in available balances on prime credit cards,nor can they get them. Banks are not giving 0 balance accounts to other than prime credit....