Debt Management

Having Difficulties Paying Your Debts?

Having Difficulties
Paying Your Debts?

Debt Management

Are you struggling to pay the minimum balance on your credit cards and loans each month? Do you worry you will never get out from under this load of debt? You are not alone!

One recent study found that an estimated 34 million Americans fail to pay the minimum balances on their credit cards and other loans on time each month. Credit Needs Debt Management Program can help you. A Debt Management Program, or Credit Counseling, is a financial service used to help consumers who are experiencing difficulties paying their debts, but who do not qualify for Debt Mediation. 14 In this program, the client will be able to reduce their interest rates, consolidate their payments, and pay off their outstanding debts faster than they would have struggling to pay minimum balances each month.

The Process of Debt Management is Simple:

Gather all of your financial documents, so that you can get a picture of your financial health. Some examples of useful documents are:
a. Paystubs
b. previous year tax records
c. household bills
d. utilities
e. car notes
f. credit card bills
g. personal loan records
h. mortgage information
i. legal settlement payments
j. monthly grocery receipts
k. monthly transportation receipts
l. ongoing medical bills.

Fill Out The Application

Once you are accepted into the Credit Needs Debt Management Program, you will pay a one-time set up fee of ______and a monthly fee of ________ . Credit Needs clients find these fees well worth it, given their interest rate savings on loans, and decreased insurance rates.

Credit Needs suggests that you enroll with a credit monitoring agency of your choosing, so that you can observe how your credit report changes over time, while you are engaged in Debt Management.

After reviewing your completed application, a Credit Needs agent will contact you to clarify the necessary information.

Once you are approved for the debt management program, you will then begin depositing money into an FDIC insured Special Purpose Account with Debt Pay Gateway. 17 Although this is a fully federally insured account, this account is not a bank account, the only purpose of this account is to accumulate the funds necessary to pay down your debts.

While you are depositing money into the Special Purpose Account, our agents will contact your lenders and negotiate reductions on the interest rates of your credit cards. In many cases, they can also seek concessions from the credit card companies, such as waivers of late fees, and other fees, that tend to trap credit card consumers. This step is the most complicated and time-consuming part of the debt consolidation process. Our agents are highly trained and certified through M-Stars, the leader in credit training and compliance for nearly ten years. Credit Needs agents are experienced, persistent and know how get the best results for our clients.

Once an agreement is reached between your credit card company and Credit Needs agents, you will be notified, and payments will begin.

As part of this debt management negotiation, most of your credit cards will be closed, so you will not be able to use them. (You may be allowed to keep your lowest interest rate card open for emergency purposes only.) Credit Needs believes it is necessary to warn you that in the beginning of this process, your credit score may be negatively impacted due to the closing of these credit card accounts. However, as you make on-time payments and reduce your overall debts, our clients usually see their scores begin to increase.

At the same time that the Credit Needs agents are negotiating for credit card rate reductions, the agent will enroll you in the Credit Needs Credit Counseling Program. The Credit Needs Credit Counseling Program is a fully accredited program that will help you analyze your current financial situation.

In the Credit Counseling Program, you and your credit counselor will discuss your debt and personal financial situation. Your counselor will review your budget and spending habits and offer targeted advice to help you manage your monthly spending. You and your counselor will analyze your debts, to create a future plan. This plan will include:
a. education about how the credit system works, as well as how it is structured to help or harm you based upon your financial situation;
b. strategies for effective repayment of the accounts that Credit Needs agents cannot consolidate; and
c. a budget that will allow you to avoid accumulating future debt.

Finally, once your debts are completely paid off, Credit Needs agents will request a letter of full payment from your credit card company, as well as an update to the Credit Bureaus to reflecting the loan status as paid in full

Credit Needs will continue this negotiation, payment, and resolution process on your behalf until all of your credit card debts are resolved.

As stated above, while the Debt Management process is much faster than struggling to pay off all your debts at the normal interest rate, this process is still time consuming. During this period of time, many of our clients take advantage of Credit Need’s Legal Services 18 Plan in addition to the Debt Management Program. Under our Legal Services Plan, creditors will stop calling you and harassing you for payment.

The Debt Management Process

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