Credit Counseling Services
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Credit Counseling services typically provide free financial consultations and budgeting advice to consumers. If they find that your financial situation needs professional help and you need to seek relief from your creditors in the form of lower interest rates and canceling of late fees they may recommend that you participate in a Debt Management Program, or a DMP.
A DMP alone is not credit counseling, and DMPs are not for everyone. Consider a DMP plan only after a certified credit counselor has spent time reviewing your financial situation in detail. Refrain from using simple online recommendations as your sole source of evaluation to join a DMP.
How a Debt Management Plan Works
You deposit money each month with the credit counseling/DMP organization. The organization uses your deposits to pay your unsecured debts, like credit card bills, student loans, and medical bills, according to a payment schedule that your counselor develops with you. Your creditors may agree to lower your interest rates and waive certain fees. like late fees or over the limit fees. However, if you join a DMP plan, follow up personally with your creditors to make sure that they have agreed to these terms. Trust, but verify! A successful DMP requires you to make regular, timely payments, paying off all your debts and this could take up to 48 months or longer to complete. Often in order to participate in a DMP and recieve its benefits, you might have to stop using your credit cards and or may not be able to apply for new lines of credit.
Is a Debt Management Plan (DMP) Right For You?
To help you get the best out of your free consultation you may want to consider asking the following questions:
Is a DMP the only option you can give me? Will you provide me with on-going budgeting advice, regardless of whether I enroll in a DMP? If an organization offers only DMPs, find another credit counseling organization that also will help you create a budget and teach you money management skills.
How does your DMP work? How will you make sure that all my creditors will be paid before their due dates? You want to make sure that your bills are being paid on time every month. Again, trust but verify.
How is the amount of my payment determined? What if my new monthly payment is more than I can afford? Don’t sign up for a DMP if you can’t afford the monthly payment.
Can I get access to my accounts online or by phone?
Make sure that the organization you sign up with is willing to provide regular, detailed statements about your account, both online and off.
Can you get my creditors to lower or eliminate interest and finance charges, or waive late fees?
If yes, contact your creditors to verify this, and ask them how long you have to be in a DMP before the benefits kick in.
What debts are NOT included in the DMP?
Make sure you are absolutely clear about which bills your DMP is paying so that you continue to pay the bills that they are not hadling.
Do I have to make any payments to my creditors before they will accept the proposed payment plan? Some creditors require a payment to the credit counselor before accepting you into a DMP. If a credit counselor tells you this is so, call your creditors to verify this information before you send money to the credit counseling agency.
How will enrolling in a DMP affect my credit?
Beware of any organization that tells you it can remove accurate negative information from your credit report. Legally, it this is NOT true as accurate negative information is exactly what should be on your credit report and may remain there up to seven years.
Can you get my creditors to “re-age” my accounts — that is, to make my accounts current?
If so, how many payments will I have to make before my creditors will do so? Even if your accounts are “re-aged,” negative information from past delinquencies or late payments will remain on your credit report.
How to Make a DMP Work for You.
The following steps will help you benefit from a DMP, and avoid falling further into debt.
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Continue to pay your bills until the plan has been approved by your creditors. If you stop making payments before your creditors have accepted you into a plan, you’ll face late fees, penalties, and negative entries on your credit report.
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Contact your creditors and confirm that they have accepted the proposed plan before you send any payments to the credit counseling organization for your DMP.
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Make sure the organization’s payment schedule allows your debts to be paid before they are due each month. Paying on time will help you avoid late fees and penalties. Call each of your creditors on the first of every month to make sure the agency has paid them on time.
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Review monthly statements from your creditors to make sure they have received your payments.
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If your debt management plan depends on your creditors agreeing to lower or eliminate interest and finance charges, or waive late fees, make sure these concessions are reflected on your statements.
If you would like a free consultation from a Credit Counseling organization simply complete the request below. And you will receive a call today or on the next business day of the week.
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Stop Collectors
From Calling.
Your Debt Management company will contact each of your creditors
immediately and let them know alternate payment arrangements have been
made. Creditors will stop ALL collection calls. Other solutions stop
only "harassing
calls" but not all calls. Debt Management stops ALL calls from
creditors that you enter into the program.
Reduce
Interest rates and fees
Your counselor will work to reduce your credit card interest rates, many times
down to 0%! Additionally they can help eliminate late and over the limit fees
potentially saving you thousands of dollars.
Debt Management can work with many types of debts.
Other debt relief solutions only work with Unsecured debts such as
credit cards. Credit counseling/Debt consolidation can work with
credit cards, medical bills, utility bills, telephone bills and more!
A
legal alternative to bankruptcy or taking out another loan.
Debt consolidation is the most trusted form of debt relief in the country. Your
company will work directly with your creditors to solve your debt problems and
achieve timely results.
You
do not need to own a home
Debt management is not a loan solution or a form of bankruptcy
so you don't have to own a home, or ruin your credit by
filing bankruptcy.
An affordable solution for ALL
If you're in debt it's likely you have little money left
over each month. Debt management works with you to create
a budget that you can afford!
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