Why Debt Management Will Help You


1 It Can Help You Stay Out of Bankruptcy

The government has made it mandatory that people who are filing for bankruptcy go through professional credit counseling before they are considered eligible for that bankruptcy. Since going through bankruptcy will financially destroy your credit for the next 7 to 10 years, it isn't something you, "just want to turn to." Therefore our non-profit debt management program could help you get on track without completely destroying your credit. They also provide you will the debt counseling you need to help you manage your future finances without the negative effects bankruptcy has.


2 They Help You Consolidate Your Payments Into One Monthly Payment

debt management Typically debt management works like this. You talk to a non-profit credit counselor who helps you understand exactly how much non-secure debt you are in. Non-secure debt can be, but not limited to, the following:


  • - Credit Cards
  • - Medical Bills
  • - Student Loans *
  • - Payday Loans *

* Some Student Loans and Payday Loans may or may not be accepted.


After you discuss your non-secured debt, the debt counselor will help close or cut-off access to you current credit cards in order to not get you into further debt. Then they will organize payment schedules to the non-secure debt collectors and finally they will help pay those bills off for you. Basically, you pay our non-profit debt program one payment a month and in turn we use that money to pay all of your creditors.


3 Our Debt Management Company Can Talk Down Interest Rates For You

debt management company Technically, you can do this yourself. You can call all of the credit companies you owe money to and ask them to lower your interest rates. It may or may not work. You probably have missed payments and because of that you could be paying up to 20% or more in interest rates, not to mention the late fees attached to not paying on time.


At this time, you will want to also tell them that you want to freeze your account. Meaning, you do not want to be able to put any more debt onto this card. By doing this, you help yourself avoid temptation for any future use. Just keep in mind, the credit companies may or may not allow this from you. They do however, provide this service to our debt management company because of the relationship that has been established.


If you choose to go this route, you will still have to pay each credit company monthly payments. So, instead of you just paying one monthly bill to our debt management program, you will need to make sure that you are paying off all the companies you owe money to every month.



This route can be accomplished by keeping a spreadsheet of where you owe, when you owe, and how much you owe.


You should also use the calculator below to help you understand how long you will owe these companies based on your old or new negotiated interest rate. Just insert your total current balance, your new or current interest rate and how much you plan to pay off each month. Press the calculate button and then you will find out how many months it will take to pay that non-secured debt off. It will also tell you how much your total payment will be and how much of that total payment went to pay off the interest.



Remember, you need to make out a budget spreadsheet and use the calculator to the left to truly understand how long you will have till you get out of debt.


This can be a very long, tedious and stressful process. That is why our non-profit debt counseling can be beneficial to you. We actually do all this work for you. We negotiate new interest rates, which usually will be much lower than any interest rate you will be able to get. Why? Simple, we are a third-party trusted source. We have helped many people just like you and we have established a reputation of paying these creditors on time. Since we have that positive financial history, the creditors give us their best rates, in which we then pass to you.


We organize what credit companies you owe and when you owe them and then we pay them. You will not have to worry about late payments or the fees that they bring, because we pay the correct amount on time. And because of that, your debt will get paid off in a much shorter time than what you may be able to do on your own. We actually can help you pay less money also, because we can negotiate better, lower interest rates. Wouldn't it be nice to have your debt paid off within a few years instead of a few decades?



4 A Debt Management Program Can Bring Your Delinquent Accounts Current

When doing your research, you may also notice that the words re-aging or curing is used when talking about this benefit.


With our counsel, you will get to be able to pay off your creditors on time. The non-secure debt companies see the commitment you have to the debt management program. You paying these debts through our non-profit program show good faith in payment continuation, so usually after three or more consecutive on time payments the creditor "reages" the account to reflect your current status.


Now the credit counselor can work with your creditors and helps them to report a current positive account to the credit bureaus. This doesn't eliminate any prior late payments from the bureau reports, but it does give you a fresh new start to building a better and more positive credit history.


5 The Debt Management Programs Help End Harassing Creditor Calls

non profit debt management help Another positive side effect of going through our non-profit counseling program is we negotiate and talk to your creditors


They are a business or person that go after payments or debt that are not getting collected. Most collection agencies work as a third party and collect non-secured debts for a fee or percentage of the total amount owed to the original creditor.


They can also be referred to as debt buyers. These types of companies buy the original debt for a fraction of the amount owed. Usually they buy your debt for pennies on the dollar. Then they come after you for the whole amount of debt and when you pay them, they pocket the in-between.


Since these people and/or companies have now taken on some or all of you debt, they want their money and they want it now. So, they do cheap and often times embarrassing tactic to get you to pay them. They will call you non-stop and they often times call you at work. They are also allowed to call your relatives in an attempt to get a hold of you. This is very embarrassing and annoying.


Here Is a Re-Cap of What We Will Do For You:


  • We will evaluate and counsel you about your current financial situation. This includes understanding exactly how much debt you owe, who you owe it to, the interest rate on your bills and what the current required minimum payment is.
  • Our non-profit debt program has counselors who will negotiate with your creditors to lower your interest rates and monthly payments. Therefore interest rates and monthly payments will be lowered.
  • We also work with the creditors to waive late fees and over-the-limit fees.
  • Once you enroll in our debt management program, we plan a repayment schedule that you can afford and you only pay one monthly payment instead of multiple credit bills.
  • That single monthly payment you make to our company then will get disbursed to all your creditors on time and on budget. We will help you get your bills promptly paid off.

How Does Debt Management Affect Your Credit?


There is a common misconception that going through a debt management program will trash your credit score. That once you apply for the plan, it automatically means that your credit score will go down. This just isn't the case.


In reality the Fair Isaac Corporation, the company that started the use of credit scores and created the formula for your "magic" number, states that being in a debt management system will have no negative effect on your FICO credit score.


Video: Debt Management & Your Credit


This can be a very long, tedious and stressful process. That is why our non-profit debt counseling can be beneficial to you. We actually do all this work for you. We negotiate new interest rates, which usually will be much lower than any interest rate you will be able to get. Why? Simple, we are a third-party trusted source. We have helped many people just like you and we have established a reputation of paying these creditors on time. Since we have that positive financial history, the creditors give us their best rates, in which we then pass to you.


We organize what credit companies you owe and when you owe them and then we pay them. You will not have to worry about late payments or the fees that they bring, because we pay the correct amount on time. And because of that, your debt will get paid off in a much shorter time than what you may be able to do on your own. We actually can help you pay less money also, because we can negotiate better, lower interest rates. Wouldn't it be nice to have your debt paid off within a few years instead of a few decades?


Other Options


For those consumers that have an overwhelming amount of debt, that when cut in half is still too large, bankruptcy may be the answer. In these cases it's usually best to speak with an attorney to advise you.


debt management counseling