Credit Counseling And Debt Management Programs - 0 views
started by Short Bagge on 22 May 13
started by Short Bagge on 22 May 13
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Not all credit counseling companies require that consumers be involved in a management program, and not all consumers who require credit counseling also require a debt management program.
A debt management program can be a program that helps consumers with their existing debt. Qualified credit consultants will take a look at your debt and revenue levels, discuss options for getting out of debt, and discuss the advantages and disadvantages of the debt management system with you.
When it is established that a debt management program is the appropriate course of action for your situation, the credit counselor will build up a fee plan with each of your unsecured creditors, in an endeavor to lessen the total amount of cash owed, reduce your interest charges, and have over the control and late charges removed from accounts when you are playing the credit counseling debt management program.
How Debt Management Programs Work
You will begin building a monthly payment to the credit counseling agency, when you join a debt management plan. The company then takes those deposits and uses them to produce payments on your account to your scholar loans, credit cards, medical expenses and other unsecured debts- utilising the payment schedule the credit counselor did out with your creditors.
Its always advisable to obtain the debt management program conditions in writing- and then ask each banker should they really do offer the concessions that the christian counseling certification credit counselor has mentioned.
Effective debt management programs might take 2 years or more to repay your debt. Your credit psychologist must be in a position to calculate how long it will take you to completely pay off each of your existing debt, and chances are while you're the main program you will be needed to not apply for or use every other credit.
Questions to Ask before Enrolling in a Debt Management Program
Before signing a contract or building a determination to utilize a debt management program, there are more questions you ought to ask to be able to determine if the debt management program is the greatest option for your circumstances.
You need to probably consider using another credit counseling program that may also provide help with budgeting and money management, if debt management programs are only offered by a credit counseling agency as their service.
Ask how the monthly payment is decided. In the event the debt management cost is higher than what you are able to afford each month- youre not planning to make any progress by using the program. Make sure the monthly payment is reasonable enough that one may make the payment as required each month ahead of the deadline.
Discover how your debt management system makes payments to creditors. Will it be inside the payment cycle and before the due date? Do they make regular payments to lenders or are they on several other plan? So how exactly does their payment schedule affect the debt?
Are there any debts that you currently have that cannot be within the debt management plan? Discover why, and make sure that you can afford to pay that bill on your own while still spending the proposed debt management payment.
Ask the credit counselor the way the debt management program may affect your credit. If they tell you they can remove negative marks on your credit history, theyre wrong. Legally, just improper bad marks on your credit score could be removed before the seven year period has ended.
Make certain the program you are considering is a management program and not a debt negotiation plan because they are two very different practices, and a debt negotiation plan might have long lasting negative results on your credit file.The American Institute of Health Care Professionals, Inc.
2400 Niles-Cortland Rd SE Suite #4
Warren Ohio 44484
www.aihcp.org
email: info@aihcp.org