Debt Management Plans

If you carry a balance, a credit card debt can be like a very expensive loan made by banks, gasoline companies or department stores. These credit card debts yield high profits to their issuers for several reasons. The most important is the high rate of interest, as high as 33% each year. Most of these companies charge late fees, over-the-limit fees and other miscellaneous charges. Our debt management program can help you put an end to these high interest credit card debts.

How It Works

Debt Management, or credit counseling, is a service whereby the we leverage the benefits provided by original creditors to create a structured repayment plan for our clients. Our goal is to save our clients significant time and money in their quest to become debt free. While working with your creditors we obtain on your behalf a reduction in the interest rates applicable to your unsecured debts. By obtaining a reduction in your interest rates, a larger portion of your monthly payment goes towards reducing your principal allowing you to more quickly eliminate your debt. In addition we assist you by structuring one monthly payment that you make to the Firm, which the Firm will distribute to your creditors each month. By making one monthly payment to the plan, as opposed to individual payments to each of your creditors, we are confident that we will be able to help you to develop a credit card management plan that will fit your budget and help you to reach your goal of becoming DEBT FREE! Remember THERE IS LIFE AFTER DEBT and we will help you get back on track.

Why Clients Join A Debt Management Program

Lower interest rates
These clients may have perfect credit but simply want the benefit of paying their debts off at a reduced interest rate. Many are over-extended which means it would take them 15 or more years to pay their debt off at their current interest rate. The reduced interest rates also save the client a significant amount of money.

Example: A simple $5,000 credit card balance with a 20% interest rate paid off using minimum payments will cost $21,168 and take over 49 years to pay down.

Improve Credit
Many clients are one or more payments past due. Since most major creditors will re-age (bring the account current) after receiving three acceptable program payments, going forward the client’s credit is improved because they will no longer be reported past due to the credit bureaus.

Minimum Monthly Payment Trap
Minimum Monthly Payment Trap - the never-ending cycle (many individuals are caught in) in which the client pays only the minimum payment required on their accounts. This happens when a client has a high balance and they are paying a high interest rate. Even though the client is making payments on time, they are not able to pay any more than the minimum required. This cycle works against a client because their balance is increasing month after month rather than decreasing. Eventually, because so much is owed to creditors, the clients are only able to send the minimum amount required. Most of this payment goes towards interest and the balances reduce very slowly, if at all (see example above). A debt management program enables these individuals to gain control of their debts. It provides them with an affordable repayment schedule obtained through the various benefits offered by each individual creditor. Debt management programs provide the clients with the peace of mind they are looking for.