Debt Managment FAQ
Debt Management FAQ: What is debt management?
Answer: Debt management programs renegotiate your unsecured debts to more favorable loan terms. Each month, you pay down your debt in a single payment you can afford. Most people seek debt management services for the following benefits:
- Lower interest rates
- Fixed interest rates
- Convenience of working with only one creditor
- Paying one amount you can afford
- Satisfying creditors
Debt Management FAQ: Can a debt management program assist me with every kind of debt?
Answer: Debt management programs help you only with unsecured debts. Unsecured debts eligible for debt management plans include but are NOT limited to the following:
- Credit Card Debt
- Small Business Loans
- Department Store Cards
- Medical Bills
- Collection Accounts
Debt Management FAQ: How do I know if debt management is the right debt relief program for me?
Answer: Please use the contact form on this webpage. An expert debt specialist will contact you quickly to help you determine the best debt relief program for you and your family. Your debt consultant will discuss the details of each debt program, and together, you will determine the right debt relief plan for you.
Every person’s financial situation is different. A debt consultant helps you choose the right program and understand why it is the best option for your debt relief. We pride ourselves in educating consumers and making you the debt expert. Your debt consultant will provide accurate estimates of how each program will relieve your debt so you can see all of your options and make an informed decision with an expert to guide you.
Debt Management FAQ: How does debt management work?
Answer: First, your debt management company renegotiates your debts to terms more favorable to you, not the creditor.
Second, each month, you send one fixed debt payment to your debt management company.
Third, your debt management company distributes this payment to your creditors and pays them the fixed amount, already agreed upon by your creditors.
Creditors are content because, each month, they receive a set payment amount and you are consistently and steadily reducing your debt balance. You benefit by making only one affordable payment each month and creditors can no longer contact you for collections. Rather than struggling to pay down the interest alone, you benefit from paying down the principal balance on your debt. Each month, you are closer to becoming debt-free. At the end of the program, your debts are paid off completely.
Debt Management FAQ: Will debt management stop collection agencies from calling and harassing me?
Answer: Yes, debt management can stop harassment from collection agencies.
After your first payments post-debt management, calls from collection agencies should cease. If collection agencies continue to harass you, your debt management company may use the Fair Credit Report Act, a Federal law, to force collection companies to stop contacting you at home and work.
Debt Management FAQ: What are the qualifications for acceptance into a debt management program?
In order for a debt consolidation program to succeed, creditors and banks must accept your proposal for a debt management plan. Creditors accept the proposals based on the following conditions being met:
- Debt must be older than 6 months.
- No major purchases made within 90 days. Typically “major purchases” mean expenditures of $2,000 or more.
- Balances cannot be more than 3 months past due.
Debt Management FAQ: What if I do not meet the above conditions? How can I get debt relief services?
Answer: Don’t worry, there are many debt relief programs designed to help Americans get their financial lives back on track.
Debt settlement programs are designed for clients who do not meet one or more of the above conditions for debt management services.
Debt settlement is an incredible debt relief program that helps millions of Americans every year. The benefits of debt settlement are almost identical to the benefits of debt consolidation. Click here to read more.
Debt Management FAQ: How will I know my creditors are being paid?
Answer: You will know the debt consolidation company is paying your creditors because you will continue to receive statements from your creditors. The debt consolidation company sends you a monthly statement that matches the monthly statement sent to you by your creditor. Your debt consolidation company fully discloses how they are helping you each month.
Debt Management FAQ: Can you repair my credit scores and credit report?
Answer: If you have bad credit at the time you begin a debt relief program, your credit scores are likely to improve substantially. Most creditors, including credit card companies, re-age accounts that have undergone debt relief programs. With timely payments, you begin establishing a sound credit report.
Debt Management FAQ: Is debt management expensive?
Answer: No, a small debt management fee is added to your monthly payment. With the debt management fee included, your monthly obligation is usually significantly less than the amount you are currently paying. There are no upfront fees to begin a debt consolidation program offered through this website.
Debt Management FAQ: Is debt management the same as declaring bankruptcy?
Answer: Absolutely not. Debt management programs help people pay what they owe and participants have the ability to obtain credit in the future. Bankruptcy is designed to absolve you of all obligations and results in long-term negative credit status.
Debt Management FAQ: How much time does debt management take to start working?
Answer: Usually, with in the first 4-6 weeks, your creditors accept debt management proposals. You will see those acceptances and reduced payments on your statements by the second month. It is possible creditors can take longer to accept proposals, but typically, clients see acceptances and debt management working within 4-6 weeks of beginning their debt management program.
Debt Management FAQ: How much time will my debt management program last?
Answer: Based on requirements from creditors, debt management programs are designed to be 4-5 years in length. However, debt relief clients can pay off their debt early and graduate from the program sooner, if desired. The time needed to complete a debt management program is based on the balances you owe and your ability to pay them with speed.