What is unsecured debt?
Unsecured debt is when a creditor holds no collateral. For example, an unsecured debt is: Credit Cards, Unsecured Personal Loans, Medical Bills, Student Loans, Taxes, Charged-Off Accounts, and Collection Agencies. No form of collateral such as a home or car was utilized to secure the "loan" for services rendered or goods received. Secured loans such as a Mortgage or car Loans cannot be consolidated.
How does debt management plan (DMP) program differ from declaring bankruptcy?
Credit counseling is a process to help people in debt regain control of their finances. Many people choose credit counseling as an alternative weather you have good credit or bad credit. Debt Management Plan provided by Debt Consolidation is voluntary.
In contrast, when you file for Chapter 13 bankruptcy, it becomes public record. Such a step has serious and long-term drawbacks, which may negatively affect your life for decades. You may also have difficulty obtaining credit in the future.
What is a Debt Management Plan?
A program designed to assist consumers in paying outstanding debt, avoiding bankruptcy and minimizing legal and debt problems
If I join a Debt Management Plan, how will it affect my credit?
If you are delinquent on your accounts now, we can get your creditors to re-age your accounts and show them current. If you pay your bills on time, but have too much credit, and you are not getting ahead by making minimum payments, by reducing your debt to income ratio, you will improve your credit.
How long will it take to pay off my debts?
Debt repayment varies greatly from client to client. t depends on the total amount of debt that you have and the terms being offered by your specific creditors. However, our clients are often able to pay back their debt in 3 to 5 years.
Should I get a loan instead?
NO. Our specialists always say that loans are what got you into trouble in the first place. Why? Most unsecured loans have high interest , and if you get a home equity loan, you are now securing your credit cards with your home.
Do I have to put all of my credit cards into this program?
NO. The choice is up to you which debt you include in our program. In fact, many people choose to keep at least one credit card for travel or emergency purposes. You can always add additional credit card later.
Is the information I give my counselor confidential?
All information you give Debt Consolidation is strictly confidential.
Will I still receive harassing phone calls?
It might be possible in the first several months, since it takes time for your creditor's collections department to find out you're on DMP program with our agency. If you get a harassing call, inform the creditor to contact us.
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