Creditors and Debt Consolidation

When will my creditors be contacted about my enrollment into the Debt Consolidation/ Debt Management Program?
A proposal will be sent to each of your creditors after you pay your Membership Fee and you have submitted all of the documents requested by your Financial Consultant . This letter advises each creditor that you have sought debt repayment assistance and request the creditors support. The proposal letter will identify the following for each creditor:
• Your account number
• Your total amount of debt
• Your total income
• Your living expenses
• The names of creditors you enrolled
• Your proposed repayment amount
• The date the creditor may expect payment
• The reason for your plan

Why are my creditors willing to do this?
Your creditors do not wish to sell your accounts to collection agencies at pennies on the dollar. They would rather retain you as a customer. Our Debt Consolidation/ Debt Management Program gives you an opportunity to pay off your debt to your creditors in a timely manner with manageable payments.

Can a creditor turn down the proposal for the Debt Consolidation/Debt Management Plan and not let me enroll?
Yes, but it does not happen very often. See below.

What are the reasons a creditor would decline a Debt Consolidation/Debt Management Proposal?
Top 12 reasons a proposal can be declined:
1) The majority of the time it is because the balances provided by you, the client, are not the most current. This causes a proposal to be sent for an amount less then the guidelines require.
2) Client did not include all cards from one specific creditor. Ex: The client has 3 American Express accounts, but only included 1 or 2 in the Debt Consolidation/ Debt Management Program.
3) The client has recent activity within 30 days, including but not limited to balance transfers.
4) The account has not been open long enough (not old enough). Usually needs to be open for at least 9 months, keep in mind that each creditor is different.
5) The client’s debt-to-income ratio is too low. The budget should solidify this information, provided the client’s income remaining after all bills are paid falls between 10%-20%.
6) Account has been charged off or in legal status.
7) Account was included in a discharged/dismissed bankruptcy.
8) The name on the account does not match the name we have. (Maiden names, spouses/significant others, etc.)
9) If the account has an introductory rate and/or is involved in a Promotional Plan
10) Account has been reported lost/stolen or one or more charges are being disputed

***Please keep in mind if the client was recently enrolled with another Debt Consolidation/Debt Management Company, they might experience delays in receiving the benefits our Plan offers.

What if a creditor will not accept the plan?
In the event that one of your creditors is unwilling to accept the proposed plan you would be contacted immediately. Depending on the reason for the decline, the counselor works with you to get it resolved. If you cannot, you can then choose to remove them from your Debt Consolidation/ Debt Management Program.

Can I use the Credit cards I enrolled into the program?
No. While you are in the program, these accounts will be closed. If you have any additional accounts issued by the same creditor(s) as an account you have included, they will also be closed. Incurring more charges onto your account will only cause your balances to go up, payments to increase, and prevent you from receiving benefits from your creditors such as: reducing or eliminating the interest on your accounts and lower monthly payments.

Will my creditors stop finance charges on my account now that I enrolled in a Debt Consolidation/ Debt Management Program?
Every creditor has a different payment guideline, as well as a guideline for what they are willing to do with your Annual Percentage Rate (AKA Interest Rate). If you want to know what a monthly payment and what your new APR’s will be, you will need to pull together the names of all of your creditors as well as the balances you have with each of them. Then you can either fill out an application on our website or call our office with the information.

Many creditors agree to stop or reduce finance charges. However, it is important for you to remember that not all creditors stop interest charges. Also, creditors that agree to stop or reduce finance charges or late fees are likely to resume the charges if payments are missed. If your due date does not coincide with your creditors' due dates you will need to contact creditors and request a change in due date. Some creditors will do so only at the request of the client.

Fill out the application on the next page or Enroll By Phone 1-800-413-4404 (9am-10pm CST Monday-Saturday) Click here for the free quote form!