Posted on
April 3, 2009
at
2:30 am
What is the defination of debt management programs?
Posted on
May 27, 2009
at
2:16 am
Credit counselors offer debt management programs to consumers who are hard-up on their current financial situation. These programs allow the consumer to consolidate multiple debts into just one loan. They also are given the chance to pay a lowered interest rate and minimal fees. When you're in a debt management program you'll be paying the debt consolidation company a regular payment that you can actually afford each month. In turn the company working for you will pay your creditors with the amounts that you pay them.Typically it takes around 2-4 years before an account is paid off in full, if your accounts are enrolled in this sort of program
Posted on
May 27, 2009
at
2:28 am
hey i agree with Karess, and just to add to what she said: be careful with some debt counseling firms coz not all of them are legitimate... They can offer debt management plans that end up like scams. Say for example you're meeting with a credit counselor and they offer you a DMP right away... You need to back off from those sorts of firms coz for the most part they're just out to get your money
Posted on
May 27, 2009
at
7:18 am
I think that may be a little over the top caffeinatrix. While there are certainly scams in the credit counseling industry (as in every industry), the biggest problem people run into when entering into a debt management plan is whether or not the creditors will work with the credit counseling agency or not. Some creditors will not agree to lowere the interest rates while some will. The best thing you can do is find out before signing up with any agency is whether or not they have experience with your creditors and what type of success they have with those creditors. That way you can determine if credit counseling is the right solution for you. Fill out a form on DestroyDebt.Com and get a free consultation!
Posted on
August 3, 2009
at
11:27 am
Are there any debt management programs out there that are free? I know that a lot of these companies are non-profit right?
Posted on
August 3, 2009
at
12:58 pm
The majority of debt management programs that are marketed as non-profit still charge a monthly fee. Typically, this fee is in the $25 per month range. Also, a one time start-up fee may also be required to enroll into some of these debt management programs.
Posted on
August 3, 2009
at
3:48 pm
Now that we covered debt management programs- we should also address debt settlement programs and how much they cost. Most companies will charge 15% of the total debt amount and spread that out over 12-18 months. Other companies may charge a percentage of what they settle for- typically around 25% of the settlement amount.
Posted on
August 3, 2009
at
6:10 pm
Ok forget about these debt management programs- my question perains to what you just said about debt settlement and the fees these companies charge. Do they take anything up front? Is the fee payment equal for each month? Are there any debt settlement companies that work with tax debt?
Posted on
August 4, 2009
at
12:55 am
As far as I know, debt settlement companies do not work with tax debt, given that it's a federal debt. I believe you need to work directly with the IRS in order for that to be done.
Posted on
August 4, 2009
at
3:36 am
how'd i know if the DMP is working to my advantage? like, how would that appear on my credit report?
