Everyone has debt at one time or another. But the fact that debt is common doesn’t make it any easier for borrowers to pay back what they owe. At DebtHelp, we’ve made it our mission to restore your financial freedom through our tailor-made debt services.
So, if you are planning to enlist our help and have some questions you need answered, please make sure you go over our Q&A. This way, you’ll have a better understanding of the kind of debt management services we offer.
1. Who needs debt management?
Individuals who are no longer able to pay off bills and various types of debts can benefit from a debt management service. When you work with a company that provides debt services, they will work with you and your creditors to devise a plan you will follow to pay off your unsecured debts (e.g. credit cards), collection debts, and or minor medical debts.
2. How will I benefit from a debt management plan?
Based on your personal circumstances, sources of income and expenditures, the debt management service you’re working with will help you create a realistic monthly budget based on your financial goals. Following a debt management plan enables you to stay on top of your bills and payments. With a good plan, you should be able to make regular, timely payments that will eventually free you from debt and improve your credit score over time.
Some creditors may also be reassured by working with debt management services they have had good experiences with in the past. You may benefit from more favorable terms if your debt management representative is able to successfully negotiate your situation.
3. How much will I spend on a debt management plan?
There is no fee to sign up for a debt management plan. We take a small percentage of the total debt at the time of settlement. If we don’t settle your debt we don’t earn any money at all. All fees associated with the program are built right into the payment. There are no hidden fees, and nothing is earned until you see results.
4. How do I know if I qualify for a debt management plan?
If you have an unsecured debt amounting to over $5,000, you are eligible for our debt settlement program. However, whether or not you qualify for a plan depends largely on your individual situation. This will be determined by a debt advisor who will help you make this decision after the assessment.
5. Will all of my unsecured debts be included in the debt settlement program?
Of course. All of your unsecured debts need to be included in the plan to ensure you get out of debt. This means that all of your revolving credit accounts will have to be cancelled to prevent further use. However, we can always make certain exceptions as long as these are reasonable. If you’d like to keep an account or two open, make sure you discuss this in detail with your debt advisor.
6. How can a debt management plan affect my credit?
There may be creditors who’ll report the fact that you’re repaying an account under a debt settlement program, although this is highly unlikely in most cases. Also, such a notation may not necessarily impact your credit.
However, having your credit accounts closed at the start of the implementation of your debt management plan can affect your credit score. The silver lining here, of course, is that your score will improve as you continue to stay on top of your monthly payments.
If you have more questions or wish to inquire about DebtHelp services, please get in touch with us today.