Is a Debt Management Plan suitable for me? A Debt Management plan is a debt solution for anyone who has unsecured debts that they can’t afford to repay. A DMP requires you to have a surplus income each month (money left over after you have paid all of your living costs and household bills from your income) and owe money to more than one creditor.
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:CCCS-OC will never turn anyone away who requests debt counseling. However, our Debt Management Plan may not be appropriate for every situation. The DMP is designed mostly for those that are behind on their accounts or who are only making the minimum payments on their cards.
How will using a non-profit Debt Management Plan affect my credit rating? Some creditors and some credit counseling agencies will report to the credit bureaus that you are repaying through a Debt Reduction Plan. Usually the credit report will reflect this only while you are actively on the program. AFCC does not report to any credit bureau. If you have been making full payments to your creditors and all your accounts are up-to-date, then your credit report may show late or less than full payments being made.
How does debt management plan (DMP) program differ from declaring bankruptcy? Credit counseling is a process to help people in debt regain control of their finances. Many people choose credit counseling as an alternative weather you have good credit or bad credit. Debt Management Plan provided by Christian Debt Consolidation is voluntary. In contrast, when you file for Chapter 13 bankruptcy, it becomes public record. Such a step has serious and long-term drawbacks, which may negatively affect your life for decades.A Debt Management plan is a debt solution for anyone who has unsecured debts that they can’t afford to repay.
Do you have other plans other than the Debt Management Plan? We provide educational classes for our clients and the community on topics dealing with budgeting, money, management, first time homebuyers, credit reports and much more. Click here to obtain a seminar schedule or look for the schedule in your quarterly newsletter.CCCS works with thousands of creditors nationwide. We have established relationships with all the major credit card companies, most chain store credit departments and finance companies.
How long will my accounts take to pay off on the debt management plan? The debt management plan is designed so that consumers can pay off their accounts within a 3 to 5 year period. Some clients begin the debt management plan during a time of severe distress due to an unforeseen hardship and therefore are only able to make minimum payments to start. As they begin to regain financial stability, however, many clients are able to send more than the minimum payments and therefore complete their debt management plans earlier than forecasted.A Debt Management plan is a debt solution for anyone who has unsecured debts that they can’t afford to repay. A DMP requires you to have a surplus income each month (money left over after you have paid all of your living costs and household bills from your income) and owe money to more than one creditor.
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