Frequently Asked Questions
How Can the Debt Management Program Help Me?
The Debt Management Program primarily benefits consumers who have accumulated unsecured debt and are now unable to make the required monthly payments. What typically happens to these consumers is that they fall behind on some of their payments, which doubles or triples their minimum payment. Interest charges accrue and, being in arrears, late charges are assessed monthly, thus increasing their debt.
Fortunately, most major creditors have hardship programs for customers who qualify and seek professional help from a non-profit consumer credit counseling agency. While the program and benefits vary among creditors, typically, monthly payments and interest rates are reduced, late fees are stopped and accounts are brought current. Creditors without hardship programs often grant similar forbearance upon receiving the agency’s request.
Once officially enrolled, collection calls regarding accounts placed in the program may be directed to the debt management agency.
Most often questions asked to Credit counseling and counselors
Why do I need credit counseling or credit counselors?
In some cases, you can negotiate with creditors on your own to arrange payment or have positive information reported to a credit bureau. However, to get the benefits of lowered monthly payments, lower interest rates, stopped late charges, and waived over the limit fees, you need Debt Saviors credit counselors. As a non-profit organization, Debt Saviors credit counselors can secure you these benefits not usually available to credit consumers.
Why can't I just keep paying off my creditors on my own?
If you keep paying just the minimum to your creditors at the current interest rate, it will take you much longer than if you paid off your debt through Debt Saviors credit counseling. A $10,000 debt usually takes 32 years and $24,500 to pay off, if you are paying the monthly minimum of 2.5% of the balance at an average interest rate of 18.5%. Because they may be able to reduce your interest rates, stop over the limit fees, and so on, it will take a lot less time to pay off your debt using Debt Saviors. Most likely, in the past, all your debt payments have just gone to pay off interest. You probably haven't even touched that balance. On average, credit counseling clients pay off their debts in 3 to 5 years, depending on individual circumstances.
How much will it cost me to be on the Debt Management Program and have credit counseling?
The consultation is FREE to everyone. As a non-profit organization, counseling program depends on these small monthly fees contributions to meet operating costs. They will consider waiving or reducing fees depending on clients' individual financial situations. Credit counseling clients find that their increased cash input from lower monthly payments, interest rate reductions and stopped late fees more than covers the cost of the monthly service fee.
How will joining Debt Saviors Management Program affect my credit rating?
Do you have a good credit history? check credit history here
If yes, then you should be aware that your credit report may state that you are working through a credit counseling program. There is no guarantee how future creditors will interpret this information, but it's believe that it'll show you are trying to get help. Your credit report probably states that you've been carrying balances, made late payments in the past 7 years, or even missed payments, so it may not be as perfect a credit history as you think. more information
If no, then credit counselors can only help you. If you make your payments in full and on time to Debt Saviors, then many of your creditors will "re-age" your account, which means they will show your accounts as current after several payments. Generally speaking, if you are paying off debt, that can refresh your credit report. Showing that you are working through a credit counseling service may show future creditors that you needed help but wanted to pay off your debts in full.
Of course, you can always increase your monthly payment. The more you pay, the faster your accounts will be paid off. Just let credit counselors know you want to increase your payments ahead of time so they can figure out which creditors to pay more money.
Should I pay on my other bills, before I send you my first payment?
That's your decision. It is recommended that you should if you can, because there is a brief negotiation period, after first payment if received, they will make future payments with your creditors. If you miss due dates for accounts in the meantime, you are risking penalty fees, such as, late fees or over limit fees, and negative information being reported to the credit bureau.
After I pay off one account, can I just pay less?
It is highly recommended that you pay the same amount and transfer whatever you used to pay for the other account to a high interest account. That way, as you pay off each account, you end up paying more to the remaining accounts, speeding up the process without changing your monthly spending budget.
Will I still receive harassing phone calls?
You might the first several months on the program since it takes time for your creditor's collections department to find out you're with credit counselors. If you get a harassing call, inform them to call Debt Saviors credit counseling and speak to your account counselor. If you get a harassing call from a collections agency that is not part of your creditor's company, they can provide you with a cease and desist letter. 3rd party collection agents must obey this letter, according to the Fair Debt Collection Practices Act.
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