“My debt management plan allowed me to reduce the interest rate on all my credit cards as well as lower my minimum monthly payment. By doing this I received the breathing room I needed until I was able to receive my raise. If it wasn’t for my debt management plan I probably would have fell behind on my bills and my credit would have been damaged. Once I reviewed all my options with my consumer counselor I knew I made the right decision.”
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Services Consumer Counseling
Credit Counseling, Debt Management & Debt Settlement
Consumer Counseling offers services for all phases of financial challenges. Each consumer has a different degree of debt level as well as financial hardship, which is why their is not a singular solution. Unlike many companies that try to shove specific debt programs down consumer’s throats, Consumer Counseling offers a wide range of programs that can be personalized for each individual situation.
Credit Counseling: Credit counseling, also known as debt counseling is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. Credit counseling often involves negotiating with creditors to establish a debt management plan (DMP) for a consumer. A debt management plan may help the debtor repay his or her debt by working out a repayment plan with the creditor. Debt management plans set up by credit counselors, usually offer reduced payments, fees and interest rates to the client. Credit counselors refer to the terms dictated by the creditors to determine payments or interest reductions offered to consumers in a debt management plan.
Bankruptcy Counseling: Choosing to file bankruptcy is not easy decision for most consumers. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has made it much more difficult for consumers to file to for bankruptcy. Electing to declare bankruptcy requires several steps. Financial Counseling & Education, Alternatives To Bankruptcy and a Financial Management Instructional Courses are some of the steps your consumer counselor will review with you. Because you are making such a major decision, consumer counseling will take special care to provide you with all of your options, and discuss the pros and cons of each choice.
Debt Management: A Debt Management Plan is a method used for paying personal unsecured debts, which typically are out of control in the sense that payments are late and those due are taking too large a portion out of the consumer’s income. A debt management plan involves noting all the debts, assessing income and budget, and re-negotiating interest rates and payments with all credit card lenders. A debt management plan is contingent upon evidence that the result will be a higher likelihood of collection by the lenders due to the debtors more realistic monthly repayment.
Debt Settlement: Debt Settlement or Credit Card Debt Settlement is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full. Debt Settlement also encompasses all forms of unsecured debt and is the most aggressive option for consumers who are seeking debt relief. Typical debt settlement programs negotiate all unsecured debts to a level equal to approximately 40% of what is owed. Creditors accept this reduced percentage in an effort to avoid selling the account to collections, which values the debt for considerably less than settlement they would receive by agreeing to a debt settlement.
Loan Modification: A loan modification is a form of loss mitigation between a mortgagee and a bank. Instead of foreclosing on a consumer’s home, the bank or lender will instead modify the loan by reducing the interest rate or lowering the principle balance, so the homeowner can afford their monthly payments and remain in the home. This process is ideal for people, who have experienced a hardship such as a job loss, unexpected health issues or even a decline in real estate in their particular market where they live.