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Debt Management

Debt Management programs are designed to get you out of debt up to 75% faster by reducing, and in a lot of cases completely eliminating the interest rates on your debt. This way, most of your money goes to paying down your principle instead of the interest. Have you ever noticed how little of your payments actually goes toward the principle? Did you know, when only paying your minimums, it takes approximately 6 years for every $3000 you're in debt to eliminate the balance?

When done properly Consolidating your debts has no negative impact on your credit score because it reduces your debt to income ratio and is not viewed as a hardship program like Debt Negotiation or Bankruptcy.

Interest rate reduction programs were created by the creditors to recapture principle that would otherwise be at risk due to Bankruptcy or Debt Negotiation. People like you can take advantage of them without hurting your credit while significantly improving your financial situation. This way the creditors can recapture 100% of their principle and you can get out of debt a lot faster. Does this sound like what you are looking for?

How does this affect my credit?

• If you have good credit, you will keep your good credit. If you have bad credit, it will improve. Understand that the objective of the creditors is to recapture their principle and in order to do this, they have to provide an incentive. That incentive is interest rate reduction WITHOUT a compromise to your credit rating. They had to leave your credit in tact because if credit counseling did tarnish your credit, who would do it? People would just file a Bankruptcy or do Debt Negotiation and save themselves the money. Debt Management does not relate to your FICO score good, bad, or otherwise so it doesn't have an effect on your credit either way. Do you know what does factor into the equation that represents a Fico score? What affects your FICO score primarily are on time payments, debt to income ratio, revolving credit, open uncollected accounts, and profit and loss write offs. Debt Management simply reduces your interest rates with your existing creditors. You will still be reporting on time payments, nothing is being charged off, nothing is going into "Placed for collection" status, and being that more of your payment is applying to your principle what will happen to your debt to income ratio? And this does what for your FICO Score?

For High Interest Rate Customers

Were your interest rates on these creditors always this high? Do you know why they went so high? The reason is because you have become a risk to the creditors that house this debt. If your existing creditors are considering you a risk, what do you think your credit rating is right now? I am not here to berate you; I am simply here to help you make the best possible choice for yourself to improve your financial situation. So in your situation, as long as you make your payments on time, you should see your credit improve significantly by getting into the program.