FAQ
How does the Debt Management and Debt Consolidation Program Work?
In our Credit Card Debt Counseling program we will help you in establishing a budget that you will feel comfortable with and capable of paying. We also work within your creditors guidelines. We will then establish a payment plan that satisfies your credit card debt obligations. At the same time you will be receiving information on a variety of financial topics that will make you more financially knowledgeable for your future. We will be assisting you in getting out of credit card debt.
How long will I be in your credit counseling program?
The estimated duration is based on your balances and how much your monthly payment is. The average time it takes to complete the debt consolidation program is about 5 years.
How will Credit Counseling Affect my Credit Report?
This is on of the most commonly asked question. So, how does credit counseling affect your credit? According to Barry Paperno, of Fair Isaac Customer Care – “Using a credit counseling service and having this situation reported on your credit report does not have a negative impact to your FICO ® scores. However, the actions you take based on the recommendations of a credit counseling service may, in some cases, affect your score. For example, an agreement to settle for less than the full amount due on an account may be regarded negatively, as well as any late payments reported either before or after you begin the plan.”
In summary, when in credit counseling if your credit is good, it will remain good. If your credit is damaged you will be on your way to rebuilding it. In addition, when enrolled in a debt management plan you will be getting out of debt approximately 3 times faster than people who try to do it on their own. Reason being is credit counseling companies negotiate directly with creditors’ lower interest rates that are passed to the consumer. Now more of your money is going towards the principle rather than to finance charges.