Debt Management Services

Frequently Asked Questions: About the Debt Management Program

Will your debt management program stop harassing phone calls from my creditors?

Once you have established a normal payment schedule and your creditors are receiving your payments on-time each month, the phone calls should stop. It does take time before all the creditors realize you are enrolled with Consolidated Credit Counseling Services. If you continue to receive harassing phones calls from your creditors, contact Consolidated Credit’s customer service division and we will inform them of your enrollment into the debt management program and make them stop.

If you are contacted by a collection agency, we will provide you with a cease and desist letter. Third party collection agents have to obey this letter according to the Fair Debt Collection Practices Act.

How will the debt management program affect my credit report?

Depending on your personal situation, participating in Consolidated Credit Counseling Services’ Debt Management Plan (DMP) could have a positive effect on your credit rating. Those who are in need of our debt management program will benefit by consistently making their monthly payments. This step alone will help you avoid negative marks on your credit report.

If your credit report already shows any late or missed payments, then the debt management program will more than likely enhance your record because of our on-time, single monthly payment method. As an added bonus and incentive, through Consolidated Credit's Debt Management Plan, many creditors will bring current your account after three consecutive payments, and as long as you continue to make all your monthly payments on time. Once you have paid off all your debts and have finished with the program, it will be easier to rebuild your credit and stay financially healthy and debt free.

How will a creditor know I joined your debt management program?

When you complete your enrollment forms with Consolidated Credit Counseling Services, our credit counselors notify your creditors that you have joined our debt management program and we will send them an official proposal that includes all the pertinent information that your creditors require. If there are no changes to the proposal, you can begin the program. If changes are necessary, we will notify you of the requested changes. The majority of creditors are willing to work with Consolidated Credit’s Debt Management Plan. It’s a better alternative than if you decided to file for bankruptcy. In the end, a debt management program is more beneficial for them and you.

How does a debt management program differ from Chapter 13 bankruptcy?

Debt management programs are completely voluntary for you and your creditors. A Chapter 13 bankruptcy may release some of the debts owed to creditors. Debt management programs provide complete payback to the creditors of your outstanding debt. Subsequently, creditors look more positively at a debt management program since it can help prevent their customers from filing bankruptcy, which would cause them to write off debts owed to them.

When can I expect to pay off my debt?

Becoming debt free is a process that takes perseverance. Most of Consolidated Credit’s DMP clients usually pay off their debts between three to five years – it all depends on your unique financial situation.

But along with paying off your debt, you will become educated on how to better manage your money and stay debt free permanently. Consolidated Credit Counseling Services will help you achieve your financial goals so you will never have the stress and terrible feelings, both emotionally and physically, that credit card debt brings. As a team, we can make it work for you.

Will I receive credit card statements from my creditors?

Yes, you will receive credit card statements each month from your creditors. These statements will reflect how much your debt is being reduced and enable you to track the progress you have been making. Please monitor these statements to make certain that the benefits you have received, by enrolling in our debt management program, such as lower interest rates and reduced fees, are active. If you find any discrepancies, don’t hesitate to contact Consolidated Credit’s customer service division at 1-877-201-7780.