How does the Debt Management Program work?
Credit cards are under a revolving payment plan. They are designed to keep you in debt, resulting in you paying an extraordinary amount of interest while trying to pay them off. Under these circumstances, you will end up paying off your card in anywhere from 15 to 30 more years. This means you will usually pay out 5 to 6 times more than you originally borrowed. By changing from revolving to a fixed payment plan, along with a lower interest rate, most of the money is applied to your balance instead of to the finance charges each month, substantially reducing your total payout term.
After you have signed up with us, we will contact your creditors to have your interest rates and monthly payments lowered so that your monthly payments will be affordable. You will no longer pay your creditors directly. You will make one payment to us and we will pay your creditors the agreed amount.
Related Questions
- Which types of debts cannot be placed in the Debt Management Program but may be settled for less than what is owed through a Debt Reduction Settlement?
- What is Debt Settlement and how does it differ from Debt Management (also referred as Credit Counseling or a Debt Consolidation Program)?
- Is a debt management program the same as filing for bankruptcy?
