Credit counseling, also known as 'debt management,' offers you knowledge about how you can avoid incurring debt that you cannot pay back, by framing an effective Debt Management Plan (DMP).
This plan helps you make repayments in a more convenient way by reducing the rate of interest charged by your creditors.
A common credit counseling FAQ is 'What kinds of accounts are qualified?' There is no requirement regarding any minimum number of accounts.
You are eligible even if you have just one account.
The debts that are fit for treatment under this service are unsecured debts, some of which are credit cards, signature loans, personal loans, collection accounts, departmental store cards and financed medical accounts.
Certain medical bills, utility bills from old addresses, and overdraft protection accounts are usually allowed too.
Under general circumstances, secured debts like mortgages and home and auto loans do not qualify for debt consolidation.
These days, many college students who are pursuing higher studies resort to credit cards to help pay some their educational costs.
Therefore, student loan debt can be paid through the plan to give the client the benefit of making just one monthly payment, even though the payment usually remains the same.
Another common credit counseling FAQ is 'Can I keep using my accounts even while taking part in the Debt Management program? ' The answer is NO - the reason being that the whole point of your joining the plan is to get rid of all your debts.
So, technically all the accounts included in the program are closed and you cannot use these accounts.
Another credit counseling FAQ that is often asked by people in debt is 'How long will it take me to pay off my accounts in the Debt Management Plan?' A valid enough question - most plans are constructed in such a way as to allow the client to be able to pay off and close all the accounts within a period of three to five years.
While initially, most clients usually pay the minimum amounts in the beginning, they begin to make higher payments as they begin to gain financial stability.
This helps them close their accounts sooner than planned.
It is a fact that if you do not clear your credit balances on a monthly basis, you could end up paying even 5 times the actual cost of the product.
If you think you require to sign up for a Debt Management Plan, make sure to read a few credit counseling FAQ pages, to make sure you know what to expect.
This plan helps you make repayments in a more convenient way by reducing the rate of interest charged by your creditors.
A common credit counseling FAQ is 'What kinds of accounts are qualified?' There is no requirement regarding any minimum number of accounts.
You are eligible even if you have just one account.
The debts that are fit for treatment under this service are unsecured debts, some of which are credit cards, signature loans, personal loans, collection accounts, departmental store cards and financed medical accounts.
Certain medical bills, utility bills from old addresses, and overdraft protection accounts are usually allowed too.
Under general circumstances, secured debts like mortgages and home and auto loans do not qualify for debt consolidation.
These days, many college students who are pursuing higher studies resort to credit cards to help pay some their educational costs.
Therefore, student loan debt can be paid through the plan to give the client the benefit of making just one monthly payment, even though the payment usually remains the same.
Another common credit counseling FAQ is 'Can I keep using my accounts even while taking part in the Debt Management program? ' The answer is NO - the reason being that the whole point of your joining the plan is to get rid of all your debts.
So, technically all the accounts included in the program are closed and you cannot use these accounts.
Another credit counseling FAQ that is often asked by people in debt is 'How long will it take me to pay off my accounts in the Debt Management Plan?' A valid enough question - most plans are constructed in such a way as to allow the client to be able to pay off and close all the accounts within a period of three to five years.
While initially, most clients usually pay the minimum amounts in the beginning, they begin to make higher payments as they begin to gain financial stability.
This helps them close their accounts sooner than planned.
It is a fact that if you do not clear your credit balances on a monthly basis, you could end up paying even 5 times the actual cost of the product.
If you think you require to sign up for a Debt Management Plan, make sure to read a few credit counseling FAQ pages, to make sure you know what to expect.