Er.. yeah.. pretty much....

Was this amount the recommendation of the company that set up the debt management plan for you?

Is there any way you can put additional funds into your repayments? Do you have any other assets?

No jackb, there is no recommendation of the company that set up the debt management plan.

Thomking,

You have made them (credit companies) happy as you are now an eternal CASH COW. They have you right where they want you...paying forever on an account that will never be liquidated. In addition you should know that many of the so-called, "Debt management" companies are actually funded by the creditors themselves. Who do you believe they are working for? (Hint: it isn't you.) NEVER GIVE THEM ACCESS TO YOUR BANK ACCOUNT. If you already have, change banks and close the old account. You never know when they will draft a large amount from your account, sending you into overdraft with your bank, or leaving you without money for this months rent or mortgage payment. They only care about themselves and will not care who or what else you may owe.

But there is a blue sky out there. It will take a lot of effort on your part if you want to change things, but it is definitely possible. The simple formula is the same as it has always been...Spend less, earn more.

Cut out all non-essential spending immediately. That means no new clothes this year. Check out the Thrift Shop if you must get something. Visit the local parks or waterways instead of going away for summer vacation. Find things to do that are free. Visit the local Library. Go for walks. Sell the expensive car (or the second car) and get one you can pay cash for. Raise the deductibles on all your insurance policies. Eat rice, potatoes, and beans. Give up the Satellite Dish and the 500 channels. Car pool. Ride the bus. Challenge yourself to live off the food in your cupboard for two weeks. Stop eating out. Do everything you can to stop all outflow of cash.

Next, work like a dog. If you are allowed, work extra hours at your job. If you can't work extra hours, find a second job for at least another 20 hours per week. (60 hours is not really all that much...do more if you can.) Save like your life depends upon it...(financially, it does). This is not the time to be investing in dreams, bet only on the sure (guaranteed) things.

When you have a small nest egg saved up, begin to negotiate with your creditors. Play hardball and don't offer your best deal at first. They are pro's and you need to deal just as smart. You are getting further and further behind as each day passes and you must find a way out. When you talk with a "credit councilor" you are most likely talking to someone who gets a commission or at least a bonus for the collections they gather. Go to the source. Let them know you are wanting to settle your debts instead of filing for a bankruptcy, but you have limited funds and keep getting further behind. If they will not take your first offer, tell them you will check back in a week. Call each week and continue to make an offer for paying off the balance. Eventually, they will see you are serious and willing to negotiate and they will most likely make a ridiculous offer. Turn it down politely and state that you thought they were interested in getting this resolved and avoiding the bankruptcy route. Call them again in another week. When there is finally an offer that you agree to, and have the money to cover, get them to mail, email, or fax a copy of the agreement to settle the account. Be sure the letter states that the account will be "paid", or "paid as agreed", and a statement to that effect will be placed on your credit file with the credit reporting agencies. Send in the payment (certified check), and keep the letter and certified check receipt forever as proof the account was satisfied. (These things have a way of coming back to haunt you.)

Make getting out of debt a game and reward yourself (frugally) with each goal you reach. As the debts retire, start funneling a significant portion of that money into retirement savings.

Thomking I believe you have been the victim of a credit card counseling program. Many of these programs are paid for and sponsored by the credit card companies themselves hence not essentially working for you. Many have been mislead by this same product of the never ending payment plan. Most consumers never realize this until they have spent thousands on interest and fees to the consolidation company. Debt settlement companies settle debt for pennies on the dollar based upon your creditors and your specific hardship. If you looked for help once you may need help in the future and if the creditors feels that you are going to no longer be a profitable account they will settle with you for cold cash. This may take some finagling but the consumer typically can prevail. The banks and CC companies will know that your options for debt management are limited and if you file for Bankruptcy they would receive very little if anything at all.