If you want to gain control of your financial situation so that you may eliminate debt and restore your good credit rating over time, then a debt management plan might be a good option. The Accredited Financial Counselors at Vision Credit Education can help you evaluate your needs to determine if you could benefit from a debt management plan.
How it Works
When you enroll into a debt management program, you consolidate all of your unsecured debt payments into one monthly payment. You choose the date you need in order to keep all of your payments current. You may also keep in mind your pay dates as well as due dates for your other major expenses, such as a car payment.
Your creditors will receive proposals for repayment through a debt management program. Proposals typically include the following:
- requests for lower interest rates
- requests for lower minimum payments
- budget summary to prove financial need
- debt summary to prove financial distress
- requests to waive any late or over-the-limit fees
- requests to re-age the account so that it reports as current
Why do Creditors Comply?
If you meet eligibility requirements of individual creditors, they will provide you with the same benefits that they provide to their other debt management program clients. Credit card companies created credit counseling as a means for reducing defaults by their cardholders. They provide benefits through debt management programs in order to help cardholders repay their debt at improved terms.
Credit card companies know that if your account goes into default, they can only recoup a small percentage of the debt from a debt collector that purchases the debt account. The rest of what you owe is written off as a bad debt that reduces their profits substantially.
It is in their best interests to help you repay your debt and avoid default. That is why most major credit card companies provide benefits to cardholders that enroll in a debt management program.
For more information on a debt management program, call 800-379-4720 to speak with an Accredited Financial Counselor. Isn’t it time that you take control of your situation? Contact us today.
