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’s customer service division and we will inform them of your
enrollment 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 program affect my credit report?
Depending on your personal situation, participating in Consolidated Credit Counseling
Services Debt Management Plan (DMP) could have a positive affect on your credit
rating. Those who are in need of our plan 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 Consolidated’s 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’ 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
plan, it will be easier to reestablish your credit and stay financially healthy
and debt free.
How will a creditor know I joined your program?
When you complete your enrollment forms with Consolidated Credit Counseling
Services, we 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 debt management plans. 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’s
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 debt brings. As a team,
we can make it work for you.
Will I receive statements from my creditors?
Yes, you will receive 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’s customer service division at 1-877-201-7780.
