Sense & Centsibility Blog

Debt Conquering Strategies

teenager looking at phone bill

So you have credit card debt. Or medical debt or even student loan debt. Or a combination! It could be a lot or a little. Maybe you are successfully making payments but the balances aren't going down. Or it's to the point where you are afraid to answer the phone and get the mail. Wherever you are a nonprofit credit counseling agency like LSS can help. The key is that you've realized it's time to make a change. Let's look at 5 ways you can CONQUER YOUR DEBT.

Debt Management Plan (DMP)

Find peace of mind with an affordable, consolidated monthly DMP deposit and a strategic plan for becoming debt free in five years or less. Yes, you read that right. You can be debt free in less than 5 years. And you will repay your debt in full.  Interest rate reductions, re-aging of accounts, and stopping late or over limit fees may be part of your plan. LSS is a licensed credit counseling agency with a skilled and experienced team to assist you in conquering your debt.  

Self-Administered Payment Plan

First, create a budget based on take-home income minus basic living expenses. Then, funds remaining are divided up for payments to creditors. Focus on getting/keeping credit card accounts current & under the credit limits then continue to send minimum payments before due date & increase payments any month affordable.

Internal Hardship Plan

When normal minimum payments are not affordable, consider contacting the creditor(s) for lower payments. This is generally a short term option. Each company has its own policy, and some may not offer this plan at all. Ask for the agreement in writing.


A new loan to pay existing debt is obtained. The lender may require some type of collateral. Make sure you understand loan terms including the monthly payment, interest rate, fees, and payoff time. It is extremely important to look into other options of debt repayment before you use any assets to secure the loan or involve co-signers.


A creditor may accept less than the full balance owed as payment in full.  Settlement terms can range from 20% to 80% off the balance. Make sure all settlement offers are in writing. Settlements can negatively affect your credit report. Ask a tax advisor whether or not the unpaid portion of the settlement is considered taxable. Settlements can be arranged by the consumer for free. There is no need to pay fees to hire a debt settlement company. Be wary of debt settlement negotiation companies and their practices.

Think about what a debt free future would mean to you. Maybe it's less worry. Maybe it's retirement! We are here to help. Give us a call at 888.577.2227 or visit our website.