What are the legal consequences if you can't maintain payments under the contract, or terminate the agreement?Most reputable agencies charge a signup fee of less than $40; due on signing or with your first month's payment. Monthly fees are usually calculated based on either the number of accounts you have under the DMA, or as a percentage of total debt in the DMA, in either event the monthly fee should be a very small portion of the monthly payment you make to CCCS.
What are the debt repayment terms?Reputable agencies merely terminate the agreement. You lose the benefit of having one monthly payment, reduced interest and service fees, and having the Agency deal with creditors on your behalf. Plus, if you fail to maintain the pre-negotiation minimum monthly payments to the creditors, you will be subject to collection actions as well. Creditors may work with you, but the credibility you had within the DMA is lost and you may find it hard to obtain good terms for debt repayment.
Do you have to cut up all your credit cards?Your monthly payment amount should be approximately 30% to 50% less than what you were paying on the same debts before you entered into the DMA. The final payment is usually based on a five year repayment plan. Considering that the minimum monthly payments, before the DMA, could have taken you 10, 20 or 30 years to repay, this is a very short term repayment.
What other services do they offer?No, you don't have to cut up your credit cards, but you may not be able to use them. Creditors will be unlikely to extend further credit until they are sure you are maintaining your part of the DMA, and are able to manage your credit successfully.
What fees are charged for other services?Money management counseling, budgeting help, and financial counseling are commonly offered by Credit Counseling Agencies who adhere to the standards of AICCCA.
Nominal fees are charged for extra services that take into consideration the amount you can afford, and the recommendations of your financial counselor.
We highly recommend reputable Credit Counseling Services because they don't just work to help you get out of debt, they teach you sound money management that helps you protect your financial future.
This highly recommended credit counseling service can save you thousands of dollars and they deal with your creditors directly. They adhere to AICCCA standards and offer online account management. Take the initiative, and make the initial contact for online debt management.
Be sure and check out the various debt solution reviews, tips, and articles
provided on DebtSteps.com:
Find Your Solution
offers a comprehensive list of reviews to get out of debt once and for all.
Get answers on bankruptcy, consumer credit counseling, debt settlement, money
management, budgeting, loans and mortgages.
Debt Relief Tips
& Articles to guide you on your way to financial freedom. Get the
lowdown on dealing with debt collectors, handling money problems, understanding
your credit, and more.