Credit Counseling and Debt Management are two names for the same thing.
Our affiliated Credit Counseling Company is a non-profit agency that specializes in helping consumers avoid Bankruptcy, get out of debt, and could be an alternative for you depending on your financial situation. Our credit counseling advisors will discuss your current situation and find out within just a few minutes if this is the program that fits your financial needs best. When you enroll in a Debt Management program, each of your creditors will agree to a specific plan for you to repay them in full. You will remain obligated for the entire principal. However, the amount of interest and penalties are often reduced.
This option is often the best for those who wish to get out of debt without harming their credit; however, it does take commitment and is never a short term solution. For this option to make sense for you, you have to be in a position to pay approximately 2.5 percent or more of the total enrolled debt per month for three to five years without fail.
Under a Debt Management plan, you agree to pay a specific sum of money each month to the plan. The money you pay will be divided amongst all of your creditors. If you’re dealing with ten or twenty credit cards, this can be extremely beneficial. However, interest on the amounts you owe will continue to accrue. It should however be at a lower rate than you currently pay in most instances.
You can only enroll unsecured debt and even though you will repay your creditors in full, you will not be able to use any credit cards that are enrolled in the plan.
There are rules associated with your participation including how many times you can miss a payment while in a Debt Management program. One benefit of a Debt Management program is that the creditors will not take any legal action against you as long as you comply with the requirements of your program.
Credit Counseling was designed by the creditors and most of the rates and payments have been pre-negotiated. The only thing that needs to be done is to go through the enrollment process. Once done, our affiliate will send out proposals to each one of your creditors which will notify them of your enrollment into the Debt Management or Credit Counseling program.
Call us today to see if Credit Counseling is right for you!
(858)771-3182
