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Debt Management is not a program that will help you manage your debt, unfortunately (unless that's included in your agreement). It is however, a program that is sponsored by creditors for consumers in hardship.
So what's the deal?
A debt management goes as follows:
- You must experience a financial hardship (High interest rates you can't keep up with, and downwards)
- You speak with a counselor to help go over your financial situation and see if you qualify for this specific hardship program
- Once you qualify, you must STOP spending on those credit cards, and make your first payment towards: the debt management company, and a total of your payment towards your debts (see below)
- Your interest rates are dropped to the creditors' hardship program rates (some will go down to 12% and some will go down to 4%, depends on the creditor- but your overall rates should be significantly reduced)
- You will NOT be reported as late to the credit bureaus and if you HAVE BEEN LATE, your accounts could be REAGED, depending on how late you have been
- Some creditors require you to put the rest of your credit cards in the program if you put theirs in (such as Bank of America)
- You MUST maintain ONE payment every month for anywhere from 2-5 years until you have paid your debts
- Even though your credit score is not impacted (according to the CCCS) by the program, your accounts WILL be closed, and you can forget about obtaining any new credit for the duration of the program (lenders frown upon credit counseling almost as much as a bankruptcy)
- Once you are done with the program, re-establishing your credit should go along much easier and smoother than a debt settlement program
Debt Management Programs are different than Credit Counseling programs in three aspects:
- One is a non-profit organization (see below)
- One is supposed to offer a monthly educational program
- The syntax, or language of a DM or CC program (by federal guidance of the FTC-they are a funny buch) determines the difference
Even though a Credit Counseling program is considered "non-profit", there have been many cases where these organizations have had their non-profit status revoked due to incompliancy.
The FTC agrees that using Credit Counseling in advertising deems the organization a non-profit organization, while a Debt Management company is deemed a FOR profit company.
So what's the difference between Credit Counseling and Debt Management?
Legally, one is supposed to adhere to non-profit rules and the other doesn't.
A debt management company SHOULD differentiate itself by offering monthly educational support, while the credit counseling agency HAS to offer one basic examination and that's it. They don't charge extra and are not held liable for offering extra.
Who should I go with?
Sadly it's hard to say. The fact that many "non-profit credit counseling" agencies have had their status revoked begs the question of: "Which one charges you more, and what value are they providing you with?"
We offer DEBT MANAGEMENT which means we offer it for profit, and we stand by it proudly for the services we offer.
How much more is it?
5 bucks a month.
Some pay over $500/ year for these services. The fact that you are looking at this program means you need to re-sharpen your skills in these areas.
What do you want from life?
DO YOU REALLY THINK WE PROVIDE YOU WITH JUST A BUDGETING SYSTEM? (HA! We have a reputation to maintain.)
Imagine this:
Human beings only change when they HAVE TO (when do you want to lose weight? When you are OVER weight!).
You are at a point where you need to change SOMETHING, when you are at a point where YOU are open to change; you are open to change ANYTHING you want in your life, because this moment is a crucial point in your mental state.
While you are changing your financial course, why not change EVERYTHING else you have wanted to change?
Please think about this for a moment
What should you do?
Establish your goals?
Know where you are and the mistakes you have made?
Drudgingly change your entire course towards a real destination?
Yes! Do it every day and feel better about what you are doing!!!
That's right! Our content is PACKED with information that will guide you with:
- Goal Setting
- Goal ACHIEVEMENT (More important than anything else mentioned)
- Budgeting
- Personal Finance
- Financial calculators and templates you can KEEP on your computer for FREE
- Insider tools and tricks (You will laugh, or cry, when you read these!)
- Career Insights (How to make more money at your job-it's simple but requires workweird)
- Career Guidance (Find your dream path and EXCEL at it!)
- Self Growth Inspiration (Never feel apathetic ever again)
- Ask and You Shall Receive access (C'mon we're just talking about UNLIMITED email support!)
To direct you to the proper solution quickly, fill out this financial budget so that we could hit the specifics right away (again, we love being relevant). When you speak with a representative they will tell you very quickly:
- If you qualify for a DM program (yes, there are actual qualifications-from the creditors)
- What your next step should be
- If you don't qualify, what other options are suited for you (these people DO NOT work on commissiongo figure)
- What other resources you could examine for your options
- Whether you should grow up and pay your bills (we have had those calls)!
- And finally, will you please fill out a satisfaction (or dissatisfaction) survey.
(Fill rest of page with information for budget or requirements)
Again, our main theme revolves around debt resolution, whether we are the end destination or not.
We appreciate any input you offer towards how our representatives and our services are doing or what services you would like to see us offer (free or not).
PS,
We are valued members of our community (meaning we have some pull and some face to save) and we can relay any wrongdoing by any sites, companies, or agents to the proper authorities (if these are relevant complaints). If you submit to us the proper information we will make sure proper measures are taken (hold us accountable we dare you!).
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