Debt And Refinance Guides
submitted: Aug 20th 2008 |
by: MillerWilson |
Total views: 1 |
Word Count: 680 |
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Is a Debt Management Plan suitable for me? A Debt Management plan is a debt solution for anyone who has unsecured debts that they can't afford to repay. A DMP requires you to have a surplus income each month (money left over after you have paid all of your living costs and household bills from your income) and owe money to more than one creditor.
How does the debt management plan affect my credit score? Your credit score is not directly affected by joining a debt management plan (see 4 credit-scoring myths). While some lenders may treat credit counseling unfavorably, the long-term effects of a debt management plan are beneficial. In fact, the debt management plan is designed to allow you to rebuild and restore your credit history by giving you an opportunity to:The interest rates that you could be eligible for depend on which creditors you owe, the amounts owed to each account and the type of account. Interest rates have ranged from no reduction to 0% interest. Once your creditors grant benefits, your lower interest rates are locked in for as long as you make consistent on-time payments. Your counselor can help you understand what interest rates to expect based on your consultation.Some lenders may view a credit counseling notation negatively.
Do you offer solutions other than a Debt Management Plan? Absolutely! In fact, less than one in ten clients that we see use a Debt Management Plan. It is great tool if it is the appropriate tool. What we try to do is give people options, examine each option, and help lead them to their best decision - many times, the best decision, it is not a Debt Management Plan.Of course! Graduates of our program buy houses and cars everyday, not to mention being approved for credit cards. The creditors believe in our financial education, and support your efforts to honor your commitments to them.
What fees do you charge in order to provide the debt management plan? All initial counseling, including budget and debt review, is free. If you were to qualify and choose to enroll on a debt management plan, the costs may vary based on your states regulations and the number of unsecured accounts you place on the program. Clients typically pay a nominal set-up cost ($34.90) to cover the expense of account activation, and a monthly servicing cost to cover recurring expenses. Clients under severe financial distress may have some of their costs waived.CCCS-OC will never turn anyone away who requests debt counseling. However, our Debt Management Plan may not be appropriate for every situation. The DMP is designed mostly for those that are behind on their accounts or who are only making the minimum payments on their cards.
Do you have other plans other than the Debt Management Plan? We provide educational classes for our clients and the community on topics dealing with budgeting, money, management, first time homebuyers, credit reports and much more. Click here to obtain a seminar schedule or look for the schedule in your quarterly newsletter.CCCS works with thousands of creditors nationwide. We have established relationships with all the major credit card companies, most chain store credit departments and finance companies.
How long will my accounts take to pay off on the debt management plan? The debt management plan is designed so that consumers can pay off their accounts within a 3 to 5 year period. Some clients begin the debt management plan during a time of severe distress due to an unforeseen hardship and therefore are only able to make minimum payments to start. As they begin to regain financial stability, however, many clients are able to send more than the minimum payments and therefore complete their debt management plans earlier than forecasted.Absolutely! In fact, less than one in ten clients that we see use a Debt Management Plan. It is great tool if it is the appropriate tool. What we try to do is give people options, examine each option, and help lead them to their best decision - many times, the best decision, it is not a Debt Management Plan.
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