Debt Management Program
A debt management program is a
proven plan to get you out of debt. It allows you to make a
single monthly payment that is distributed to your
creditors. This eliminates the need to make individual
payments to each of your creditors. Many of the creditors
who participate in the program will allow you to reduce your
monthly payment. After you establish a payment history with
your credit this procedure can reduce or eliminate interest
and late charges pending. That way more of your payment goes
to reducing your debt, getting you out of debt faster.
Beware of other companies who over-promise and then cannot
deliver. As the largest provider in the industry, we have a
proven track record and stand behind our word.
Collection calls usually stop after the third consecutive
payment on the debt management program. If you continue to
receive collection calls after your creditor has posted
three consecutive payments, please contact us by e-mail with
the name of the creditor and the last four digits of the
account number to allow us an opportunity to investigate.
Please keep in mind, your creditors are often large, complex
organizations; sometimes the department that is calling you
has not been notified about your enrollment status. The
costs of our program may vary based on state regulations and
the number of creditors you place on the program.
Nevertheless you can pay a nominal set-up cost to cover the
expense of account activation, and a monthly servicing cost
to cover recurring expenses.
If your credit report already reflects any late or missed
payments, then the debt management program will likely
improve your record by facilitating consistent, on-time
monthly payments. Also, if you were late in the past, many
creditors will report you as "current" as long as you make
all of your monthly payments on time. If you have never
missed a payment, then sending reduced payments to creditors
or getting interest concessions through the program could
put a blemish on your credit report. A creditor may report a
reduced payment as "late" or reflect that payments are being
administered by a credit-counseling agency. Since the plan
objective is to help you get out of debt, lenders may avoid
issuing new credit card debt until you have completed or
withdrawn from the plan. |
