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What is credit card debt consolidation?
Credit card debt consolidation plans involve restructuring your existing unsecured debt with your existing creditors. Money is not loaned, and creditors do not change --- but the terms and conditions under which the existing debt can be repaid can change significantly. Under our Debt Consolidation Plan, the monthly payment which is expected by the creditors is typically lowered and, in most cases, interest (APR) due to the creditors is lowered --- and sometimes totally eliminated. Creditors no longer charge you past due fees and will in most cases bring your account to a current status to help you rebuild your credit. Ask one of our certified credit counselors for more details.
A person qualifying for a debt repayment program will usually find they are making more progress towards reducing their debt even though they are making lower monthly payments. Since most creditors report payments received under this plan as prompt payment, the person's credit report is usually improved by our non profit payment plan.
What are the benefits of a credit card debt consolidation program?
A Debt Consolidation Program combines two essential elements: the ability and the motivation to get out of debt. Under such a plan, you make one monthly payment to us and we disburse all funds to your creditors. Usually this payment is lower than current minimum payments and it is always within your financial ability to pay. One of our certified counselors will provide you a free budget counseling session to review your debt to income ratio.When we pay your creditors, it is almost always at a lower interest rate so that your payments actually go toward reducing your debt.
Will credit counseling appear on my credit report?
Only your creditors can report your actions to the credit bureaus and influence your credit score. Creditor participation in our program and financial support of our operations are strong indicators that such a program will not harm your credit. By reducing debt and having the creditors report the payments received as prompt, on time payments, most people who enter into a consolidation plan will actually improve their credit rating. Some creditors do report participation in a debt consolidation program to credit reporting agencies. You should keep in mind that such reporting has many positive elements. Participants in debt management programs cannot go further in debt. In addition, debt plan participants are paying creditors according to the creditors terms and conditions.
How do we obtain lower payments on your behalf ?
Our non profit agency has established relationships with many of the major lending institutions and credit card companies who have agreed to either reduce or eliminate an individuals interest charges and late fees. It should be of interest to you that we may be able to lower your monthly payments and help rebuild your credit.
Can medical and hospital bills be included in a debt consolidation plan?
Yes! We work directly with these types of creditors on an ongoing basis. We contact them immediately and are usually successful in negotiating better terms, lower payments and rates.
Should I consider filing for bankruptcy instead of joining your program?
Filling bankruptcy should be your last resort in solving your financial difficulties and our certified credit counselors can provide experienced professional advice in a free budget counseling session. Although it may help you now, it will hurt you in the future. If you choose to file bankruptcy, be prepared to accept the unfortunate consequences. It will appear on your credit report for at least ten years. In addition, it can be reported for the rest of your life when applying for certain types of state licenses, jobs, as well as various types of loans. Before you consider filing bankruptcy, give yourself one last chance to obtain financial freedom and contact a certified credit counselor today. .
Why shouldn’t I apply for a home equity loan or debt consolidation loan to pay off my creditors?
Most people like this idea, as they receive a check to pay off all their creditors almost immediately. In addition they are told that the interest payments are deductible. However, these methods fall under the phrase 'Robbing Peter to Pay Paul'. Using a home equity loan simply means you've turned your unsecured debt into a secured debt, your home. A consolidation loan is simply another line of credit. You're looking to get out of debt, not incur more.