Credit Counseling Services
Got Debt? Talk to one of our certified credit counselors.
Credit Counseling
Initially, we will ask for some financial information in order to get an idea of the client’s situation. They’ll receive a personalized, thirteen page, Personal Financial Analysis that lays out their financial picture. The Analysis includes information about where they may be excessively spending, where most of their money is being spent and what their bottom line (income vs. expenses) is each month.
Then, with the client, a certified credit counselor will review their Personal Financial Analysis in detail and discuss their spending habits, create short and long-term financial goals and work to anticipate changes in income and expenses, and how to handle it. The counselor will also review their budget and decide where they’ll need to cut back, and where they may be able to expand their income.
Options for getting out of debt will also be reviewed. The counselor will discuss the appropriate options for the individual which may include: handling the debt on their own with their creditors through a hardship program; setting up their own self-administered and custom designed debt repayment plan; enrolling in our debt management plan (see below), bankruptcy or any other options which may be appropriate to their situation.
Debt Management Program
QThe purpose of a DMP is to get an individual back on track financially through regular and consistent payments, and allows you to pay down your debts within 3 to 5 years.
When you enroll in a DMP, you may receive the following benefits:
• Reduced monthly payments - Because DMP's were designed for financially stressed consumers, many times your creditor will allow you to make a smaller payment through Debt-Free America in order to free up some of your income for other important and necessary expenses.
• Fee waivers - If your account is past due and you are receiving fees, your creditors may offer a fee waiver. This means that while your account will still remain past due, until the past due amount is paid, your creditor will not charge you a fee for the past due amount. This will allow more of your monthly payment to get applied to your balance and assist in paying your debts off faster.
• Re-aging - If your account is past due, your creditor may provide a re-age instead of a fee waiver. Re-aging means that while the past due amount is still owed and part of your total balance, the amount is removed from past due status and your account is marked current. This can help increase your credit score, because your account is now current and you will continue to make consistent payments through your DMP.
• Interest rate reductions - Many creditors reduce interest rates charged, so that more of your payment goes to the balance rather than to the finance charges each month.
It is important to note that these benefits are determined by the client’s creditors, and therefore cannot be guaranteed.
Many debts can be included in a DMP, including most types of unsecured debt such as credit cards, medical bills, department store cards, lines of credit, collection accounts and taxes. Secured debts such as your mortgages and car loans cannot be included in the program. All major creditors participate in consolidation programs. Banks, credit unions, many lending institutions, department store cards, hospitals, collection agencies and state and federal governments are just a few examples.
Save for the Future
As part of setting goals, we encourage individuals to save for the future and build wealth out of those savings. DFA can help with tips and tools to help an individual: develop a savings strategy, begin a savings plan and find the right resource to help that money grow for college tuition, home ownership and retirement.
Contact a certified credit counselor at:
1-888-268-2926
e-mail: counseling@debtfreeamerica.com