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 How Does a Debt Management Program Work?

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Pros and Cons of Debt Management Programs

One affordable monthly payment (typically lower)
Reduced payment period (close to half the time)
Over the limit and late fees waived (after 90 days in a program)
Bring past due accounts current (after 90 days in a program)
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How does a Debt Management Program work?

How Debt Management Programs Work

First you will talk with a specialist who knows all about the program and will help you get verified and approved for a debt management program. You will only need to give out your basic information to generate a quote. The specialist will then tell you what your monthly payment will be as well as how many months it will take for you to pay off your balance.

If you like what you see, the next step is to get your statements and provide all your account information. Just make sure the company you are working with is legitimate and your information is confidential. You may find out details about a company by asking if they are listed with the BBB, (Better Business Bureau), and getting their company ID#. After you provide all your information and you have been approved you will be required to pay the one time enrollment fee. Your approval codes, that are required for verification purposes, are generated by two phone calls that will verify with you all the details of your program.

The one time enrollment fee that these companies charge is usually based on your debt level and what type of hardship you have been through. Typical fees range anywhere from $200-$2,500. The best option to take care of the enrollment is to place it onto a card that’s already going into the program. That way you won’t have to take that money from your wallet. Once the verification calls are completed you are now enrolled.

Your actual program start date is the day you make your first monthly payment and this is on a day of your choosing. Now your only responsibility is to make your monthly payments by the due date that you have established. You now simply continue to make your monthly payments until the balance is paid off.                         Back to Debt Management >

 

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