Credit Counseling
Credit Counseling and its servicing agents work on mutual agreements with, and with every aspect of participating creditors, to assist families and individuals to become debt free.
By entering into their management program, the creditors will make a compromise by reducing and sometimes eliminating the interest that you are currently being charged. The compromise the creditors will ask for in return is that you don't charge on any credit card that is included in their program.
Most importantly, the means by which the money is payed toward your debt in this program is going toward reducing your principal rather than going to the finance charges. In order for the creditors to do that, they require minimum monthly payments based on your balances in order to qualify you for their debt management program.
Once you are set up in a credit counseling program, you will have one monthly payment that will satisfy all the creditors that you included in the program. You will be able to choose the date of your payments every month. Your accounts will be re-aged and all creditors will have set the same date for payment every month. You will then make one monthly payment to the program, and your payment is disbursed to your creditors.
Your creditors will still send your monthly statements so that you can see your adjusted interest rates and follow your balances in an on going basis. In other words, you will see the progress that you make every month directly through your own creditors.
By entering into their management program, the creditors will make a compromise by reducing and sometimes eliminating the interest that you are currently being charged. The compromise the creditors will ask for in return is that you don't charge on any credit card that is included in their program.
Most importantly, the means by which the money is payed toward your debt in this program is going toward reducing your principal rather than going to the finance charges. In order for the creditors to do that, they require minimum monthly payments based on your balances in order to qualify you for their debt management program.
Once you are set up in a credit counseling program, you will have one monthly payment that will satisfy all the creditors that you included in the program. You will be able to choose the date of your payments every month. Your accounts will be re-aged and all creditors will have set the same date for payment every month. You will then make one monthly payment to the program, and your payment is disbursed to your creditors.
Your creditors will still send your monthly statements so that you can see your adjusted interest rates and follow your balances in an on going basis. In other words, you will see the progress that you make every month directly through your own creditors.
posted by Riviera at 1:06 PM
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