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Frequently Asked Questions About Our Debt Management ProgramWhat is Debt Consolidation without a loan? Debt Reduction: How long will it take to pay off my debts? What about the late fees I'm being charged by my creditors? What about the high interest on my cards? Why will my creditors lower my interest rates for you, but not for me? How does your program differ from filing bankruptcy? When do I pay you? Should I get a loan instead of using your debt management services? What if I am past due on my accounts? My accounts are paid on time but my balances do not go down. Can you still help? Can I still use my credit cards? How soon can you contact my creditors? Should I tell creditors about my plans to enroll in your program? Will I continue to get calls and collection letters from my creditors? Will the Debt Management Program affect my credit report? Will you send me a detailed monthly statement? What are your fees? Is this confidential? What if I win the lottery and want to drop off your program? What is Debt Consolidation without a loan? It is a way out of debt and a step towards regaining financial control. Family Credit Management Services is a non-profit credit and debt counseling service. Once enrolled in the program, our counselors work with you to establish a monthly budget and negotiate with your creditors to establish a payment plan that falls within this budget. You make only one payment to us each month to satisfy all of your creditors included in the program. Debt Reduction: How long will it take to pay off my debts? Debt repayment varies greatly from client to client. However, because we are often able to reduce high interest rates, clients are often able to pay back their debt in three to five years after starting on a debt management program. What about the late fees I'm being charged by my creditors? Most creditors will stop charging late and/or over-limit fees once you enroll in our program. What about the high interest on my cards? As a way to support our program, many of your creditors will reduce or even eliminate their interest rate. Why will my creditors lower my interest rates for you, but not for me? By the time most people contact us, they realize they need outside assistance to help them fulfill their credit obligations and are committed to doing so. Creditors know this and would much rather work with us than turn the account over to the Collection Department. How does your program differ from filing bankruptcy? For most people, filing bankruptcy is their last option to escape the collection services that are harassing them. Our credit and debt counseling service provides an alternative to filing bankruptcy that will enable you to eliminate the harassing calls and still pay off your debt. Should I get a loan instead of using your debt management services? Probably not. Loans are what got you into trouble in the first place. Most unsecured loans have high interest, and if you get a home equity loan, you are now securing your credit cards with your home. When do I pay you? Your credit counselor will arrange a monthly payment due date that fits best into your monthly budget. You can even split your payment in half and pay twice monthly. What if I am past due on my accounts? That is no problem at all. Creditors just want to be paid. Most creditors will bring your accounts current, stop late and over limit fees, stop collection calls and reduce or eliminate interest. My accounts are paid on time but my balances do not go down. Can you still help? YES! High interest rates are the real killer. By getting your creditors to reduce their high interest and fees, more of your monthly payment goes to reducing your debt and you can become debt free years quicker than you would on your own. Can I still use my credit cards? We tell your creditors you have a sincere desire to get out of debt and ask them to help. The accounts included in your debt management program are closed until you are debt free. How soon can you contact my creditors? Payment proposals will be sent to your creditors once your enrollment is completed. Should I tell creditors about my plans to enroll in your program? Yes, any creditors who contact you should be advised of your plans. Major creditors are usually supportive. Will I continue to get calls and collection letters from my creditors? Most creditors will stop collection activity once they receive the first payment from FCCS. Will the Debt Management Program affect my credit report? Participation in a debt management program may have either a favorable or unfavorable effect on your credit report, depending upon your credit history. It is your creditors, not FCCS, that report your credit history according to their policies with respect to the plan and your payment history prior to and during your participation in the plan. Consistent monthly payments on our debt management program will help to avoid negative marks on your credit and help you reach your debt reduction goal as planned. Will you send me a detailed monthly statement? Yes. On or about the 28th of each month, you will receive a detailed statement which summarizes the payments made to each of your creditors. What are your fees? Like many IRS approved Non-Profit organizations (hospitals, credit unions, churches), we require financial support from the people we serve. Our fees are based on a sliding scale and there is never any charge unless you enroll in our Debt Management Program. Unlike other credit counseling services, we have no hidden charges. Is this confidential? Absolutely. Trust is one of the reasons so many people choose or refer to Family Credit Management Services. We never have and never will sell your name or address to any party for any reason. What if I win the lottery and want to drop off your program? That is no problem. You are only enrolled on our program for as long as you want to be. You may terminate the plan at any time for any reason. |
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