1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair Isaac).

2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% - 30%!

3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.

For and Against Indianapolis Nonprofit Debt Consolidation

Immobile in Indianapolis

People who have accumulated too much debt and who are now having difficulty making even the minimum monthly payments often feel completely stuck, as if they cannot move in any direction to resolve their problems. In looking for options, they may be pulled in many directions, some of which involve truly negative consequences. Others may pose solutions which will be difficult and involve a significant amount of self-discipline and sacrifice. One option is debt consolidation through a nonprofit debt consolidation firm.

Pros and Cons

There are some negative aspects of going to a nonprofit debt consolidation organization, as follows:

You have to bear your entire financial picture to your counselor, and this can be a difficult and uncomfortable process.

If you enter a debt management plan with the organization, you will be charged fees for the services they provide

You will be required to participate in personal finance training and education and this may take some free time.

It appears, however, that the positive aspects may indeed outweigh the negatives, in the following ways:

You will receive a complete analysis and evaluation of your financial situation for free

You will obtain assistance in the development of a budget that is realistic and helps to get you back on track

You will receive important education that will help you avoid disastrous debt situations in the future.

You will receive debt management plan help that can reduce your total debt to creditors and a monthly repayment structure that you can actually afford.

If Debt Consolidation is your Choice

Look for a nonprofit company in the local Indianapolis area, because the fees for the debt management plan and administration will typically be less. Two options might be the following:

Momentive Consumer Credit Counseling Services, Inc.: A full range of counseling services are given for free, as well as follow-up assistance. Fees for debt management plans are moderate.

Pioneer Credit Counseling: Member of the National Foundation for Credit Counseling and as such provides free services for everything except a debt management plan. Again, fees are moderate.

Stay Within Your Budget

Once your budget is set, you must stick to it without exception. If at all possible, there is a small savings plan in that budget, and that will be most important for future emergencies, so that credit cards will not have to used. Shop sales, avoid the morning bagels and lattes, and start taking your lunch. Plan errands and other trips carefully so that you are using a minimum of gas. Never go shopping without a list. Choose less expensive entertainment venues that are often recommended to tourists on a budget. Indianapolis has six cultural districts with museums, music and galleries. The Canal and White River State Park is a full 250 acres of gardens, a zoo, hiking trails, and nature to enjoy at minimal cost.

Visitors who come to Indianapolis on a budget can find moderately priced accommodations at America's Best Inn and Suites, the Ashley Motel, or the Indy Hostel. Reasonably-priced meals can be found all over the area, including the Adobo Grill, 8 Seconds Salon, and Andrus O'Reilly's.