There could be several reasons why a creditor is still charging fees. If you see a fee on your current credit card statement, please contact our Client Services Department at 800.350.2227 immediately, so that issue can be addressed with your creditor.
Each creditor can either accept or reject a debt management proposal. If the creditor does not accept a proposal, they may accept the full standard monthly payment through our program. If a creditor refuses to accept your payments through a debt management company, the account will be removed and you will need to send your regular monthly payments directly to the creditor.
Notify our office immediately. We will then make the necessary changes to ensure the new creditor is informed of your participation in our Debt Management Program and that your payment is being sent to the correct address.
All accounts need to be included from the beginning of the origination of the DMP. If not, this could cause other creditors to reject the program. No further debt is to be incurred during a DMP. The goal is to be debt-free. Of course, everything is reviewed on a case by case basis.
Some creditors may contact the credit bureaus and put a notation on your report indicating that you’re going through credit counseling. This is a neutral notation that does not affect your credit score. However, individual creditors view this notation differently and it may affect your access to additional credit, so taking part in a Debt Management Plan (DMP) may have a negative impact on your credit rating, but only during the duration of being on a DMP.
Yes. You will continue to receive monthly statements from your creditors. You should check your statements to make sure they reflect payments made through the Debt Management Plan and that there are no late fees. Or overlimit fees being charged if the creditor had agreed to those terms. If you notice a problem, notify FSA/CCCS immediately. FSA/CCCS is not responsible for issues or errors that are not reported in a timely manner. If you are not receiving statements or your creditor refuses to send them, it is your responsibility to contact your creditor to check the status of your account.
Yes. Most creditors will not accept a Debt Management Proposal without first having the client cancel credit card insurance.
No. All accounts entered in the Debt Management Program will be closed. In order to get out of debt and regain financial stability, you must stop incurring new debt.
Your total monthly payment will remain the same throughout the life of the program. As one account is paid off, the funds for that creditor plus the maintenance fee will automatically be reallocated in a way that is most beneficial to you, which is generally the account with the highest interest rate.
A Debt Management Program is designed to complete in approximately four to five years, based on the minimum required program payments. However, the length of the program will be determined by the total amount of your debt, your specific creditors, and whether you can send extra funds as you become more financially stable.
Once your Debt Management Plan is accepted by the creditor, and generally after making three consecutive payments, many creditors will reage a delinquent account to show as current on your credit report. Federal law prohibits creditors from reaging an account more than once in a five-year period.
Program interest rates are predetermined by the individual creditors that you have.
To become credit card debt-free! A Debt Management Program can assist you in gaining control of your finances by developing a personal budget and helping to improve cash flow. Creditors may provide benefits such as lower interest rates, stopping late and over limit fees, and reaging delinquent accounts to reflect current status.
Our Debt Management Program can help you with both unsecured debts (such as credit cards, department store cards, medical bills. Signature loans, and many collection accounts) and payments of secured loans, if it is in your best interest. However, acceptance of the program is based off of each individual creditor.
There is a one-time fee enrollment ($25 for Wisconsin residents and $35 for Minnesota residents) and a monthly maintenance fee depending on the number of creditors and funds disbursed with maximum of $50.
The creditor will likely cancel after two consecutive missed payments. Some creditors may cancel after three missed payments during the five-year plan cycle. CCCS may drop a client if payments are less than what has been agreed upon or sporadic. If there is a problem with a payment, the client should notify CCCS immediately. Once a DMP is cancelled it cannot be re-established. All debt will then be the responsibility of the client.