How does the debt management plan affect my credit score?
Your credit score is not directly affected by joining a debt management plan (see 4 credit-scoring myths). While some lenders may treat credit counseling unfavorably, the long-term effects of a debt management plan are beneficial. In fact, the debt management plan is designed to allow you to rebuild and restore your credit history by giving you an opportunity to: Bring your accounts to current status without having to pay large past due amounts. Rebuild and restore payment history. Reduce your overall amount of debt faster. In 2003 alone, over 50 of our clients on the debt management plan were approved for home loans.
