Debt Management Plan, or Debt Management Program, is usually administered by a Credit Counseling company. If you have fallen behind financially, and have amassed a large amount of unsecured debt, we help you get your financial life in order.
In an initial free credit counseling session, you collect all of your outstanding credit card statements, and monthly bills, and we work with you to create a manageable budget .Next we assess your credit card debts, and other unsecured debts, and create a proposal to send to your creditors. Creditors have been known to lower your monthly interest rates, accept a lower monthly payment, or re-age your accounts so they are current, instead of in arrears. The goal of a debt management plan is to get you out of debt in the shortest period of time, without going through bankruptcy or debt settlement, both of which are detrimental to your credit score.
Once a proposal is accepted, we set up an account for you, where you transfer funds directly to us via EFT, electronic funds transfer from your checking account. Each month, we make sure your bills are paid on time, and keep you appraised of your status with a monthly statement of your account.
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Our debt consolidation plan is designed to provide a unique solution to your personal financial situation. We will provide you with options to help you plan for a debt free future.
Debt consolidation can help you with your unsecured debt (debt not linked to an asset).
Through a debt consolidation plan you will be able to combine most, if not all of your unsecured debt and make one single monthly payment. Those accounts will still exist, but will be paid monthly through your account at ACCC.You will find that by engaging in a debt consolidation program you will become more organized and accurately understand your financial obligations each month. Debt consolidation may also lower your monthly payments.
Examples of unsecured debt include: credit cards, department store cards, credit lines, and unsecured personal loans are all examples of unsecured debt. Each month, we disburse payments to your creditors on your behalf.
Upon enrolling into a debt management plan we will create a proposal to your creditors for a possible reduction in interest rates, perhaps re-aging your accounts and making them current, or removing penalties. Your debt manageemnt plan also may include a reduction in finance charges and over limit fees. And lastly, your plan may lower your monthly payments and the time required to pay off your debt.
Our professional credit counselors are available weekdays, evenings and weekends. Call to speak with a certified counselor to help you determine if a debt consolidation program is right for you, and to help you with a free budget analysis. Or begin the process with our
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When getting help with your credit, know your options
Credit Counseling: Counselors provide advice to help you manage your money and consolidate credit card debt. They can assist you in developing a budget, and offer free educational materials and workshops so you can understand how to consolidate credit card debt in the most advantageous way possible. These counselors are certified and trained in the areas of consumer credit, money and debt management, credit card debt consolidation and budgeting. They discuss your entire financial situation with you, and help you develop a personalized plan to consolidate credit card debt and solve your money problems. These companies help "manage" your debt by taking one monthly payment from you and distributing the money among your creditors, with whom they've often worked out lower payments and lower interest.
Credit Card Debt Consolidation: Rolls up your existing debt into a new loan product. When you consolidate credit card debt your monthly cost of credit is lowered by extending the length of the loan. Typically, you have to offer collateral, such as your home, to secure a debt consolidation loan. Any time you cannot make payments on a loan with collateral, you lose your collateral. Remember, you can’t borrow your way out of debt.
Credit Repair: Companies offering to repair credit are usually disputing inaccurate or incomplete information on your credit report. You can do this for free. You don’t need to hire someone to do this for you. Remember, there is no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.
Debt Settlement: A claim that can be arranged for your unsecured debt — typically credit card debt — to be paid off for anywhere from 10 to 50 percent of the balance owed. There are no guarantees. Most debt settlement companies charge consumers substantial fees for their services, including a fee to establish the account with the debt negotiator, a monthly service fee, and a final fee of a percentage of the money you’ve supposedly saved.
Bankruptcy: A process established by a set of federal laws that is designed to cancel many of your debts through an order of the court. Bankruptcy also allows creditors who are owed money a chance to get their designated share of any money the debtors can afford to, or are obligated to, pay back.
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It’s never too early or too late to start saving. There are lots of reasons to save: retirement, emergencies, vacations, etc. Try these strategies to build up your savings.
- Record your purchase (try ACCC’s budget in your pocket) Write down every purchase. Even gum and water... You will find yourself saving money more than ever. At the end of the month divide costs on categories: - travel costs - food costs - finance costs and you will find way to save in every category
- Make your monthly credit card payment on time. The $30-35 you save by not being charged a late fee each month on one card would save you most of the money you need for $500 in emergency savings.
- Open a retirement account. No matter how bad the economy or how much you make, set aside even a few dollars each month and see it grow.
- Refinance you mortgage. If you can reduce your interest rate by one percent or more, it is often beneficial to refinance. This is particularly true for those with high rates due to less than stellar credit scores.
- Not taking advantage of your company’s match in a 401 (k) plan, or getting involved in a defined contribution plan is a mistake.
- Automatically withdraw a small amount from your paycheck to a savings account. If you and your partner can each withdraw $50 a week, you will save over $5000 dollars a year!
- Create a visual reminder of your debt. Basically, just make a giant progress bar that starts with the amount of debt you have and ends with zero. Each time you pay down a little bit, fill in a little more of that progress bar.
- Pay yourself first before paying your other bills. Try to stick with at least 10% of your monthly paycheck if you can handle it. Bump that up 20% if it doesn't put too much strain on you financially. You'd be amazed how fast the savings will grow.
- Whenever you get any unexpected/unbudgeted income (tax refunds, sales, freelance earnings, gifts, and rebates), either use that money to pay down debt or put it in savings. Don't even consider spending it.
- Use free tax software to do your tax return. Most people have returns that are way simpler than they realize.
- You can be just as good an American by putting stimulus cash in one of the many high-yield savings accounts available online (easy to open) or use it to pay down your credit card debt, especially if you're carrying a card with a high interest rate.
- If you get the impulse to buy something wait 48 hours and see if it is still there.
- When you do go out to dinner, eat a little something before you go so that you are not hungry. Also, never order anything other than water to drink.