The Debt Management ProgramFor most consumers facing financial hardship a Debt Management Program offers the best and most effective solution. We invite you to view our brief presentation. In the short time it will take, you will be able to decide whether or nor the program is right for you. Most creditors offer a special repayment plan to their customers who undergo financial hardship and enroll in a Debt Management Program provided through an established nonprofit consumer credit counseling agency. The Center for Debt Management™ works in association with Family Debt Arbitration and Counseling Services, Inc., an IRS designated 501(c)(3) nonprofit charitable organization, registered with Internal Revenue Service. Together our organizations works in harmony to provide our mutual clients with debt management services second to none. To view our presentation and to learn about the Debt Management Program and more about who we are, simply scroll through this document, or if you prefer, use our Index to read about a subject of interest. Due to state laws, the agency cannot accept residents of Alabama, Michigan, Virginia or Oregon. Residents of these states may want to consider seeking a Debt Reduction Settlement..
 How Can the Debt Management Program Help Me? The Debt Management Program primarily benefits consumers who have accumulated a minimum of 5,000 in unsecured debt and are now unable to make the required monthly payments. What typically happens to these consumers is that they fall behind on some of their payments which doubles or triples their minimum payment. Interest charges accrue and, being in arrears, late charges are accessed monthly ever increasing their debt. Fortunately, most major creditors have hardship programs for customers who qualify and seek professional help from a nonprofit consumer credit counseling agency. While the program and benefits vary among creditors, typically, monthly payments and interest rates are reduced, late fees are stopped and accounts are brought current. Creditors without hardship programs often grant similar forebearance upon receiving the agency's request. Once officially enrolled, collection calls regarding accounts placed in the program may be directed to the debt management agency. In a nutshell, the Debt Management Program may:
What Accounts Can I Place in the Program? Only unsecured debts, such as, credit card accounts, medical bills, service charges, personal loans, signature loans, and certain installment loans can be placed in the Utility bills, insurance payments, membership dues and other ongoing services cannot be placed in the program, unless the service is no long required from the creditor and there remains an outstanding balance of over 100. Secured loans, such as, mortgages, auto loans, leases and student loans; and money obligations, such as, rent, taxes, child support, alimony and fines cannot be placed in the program. Money owed to friends and family can be placed in the program, however, in most cases, they are omitted in anticipation that the friend or relative will offer leniency. In a nutshell, the following types of accounts can be placed in the program:
Notice: It has been established that in order for the Debt Management Program to benefit the debtor, a minimum of 5,000 of unsecured debt is required. Why Is this Program Offered on the Internet? Debtors, having to discuss their financial woes in the typical face-to-face meeting with a debt counselor, at the minimum experience anxiety. Despondent and/or embarrassed, many debtors in need of counseling and financial assistance are reluctant to discuss their financial affairs with an outsider. Consequently, many never take the necessary steps to amicably resolve their financial hardship. By offering these services online through The Center for Debt Management,™ consumers with access to the internet may receive a confidential financial analysis, absolutely free of charge and without obligation. If qualified, applicants may enroll in the Debt Management Program. There is no need for personal contact. All transactions can be handled via email, telephone or postal service. Providing these services online not only alleviates any concerns of a face-to-face meeting, but also ensures absolute confidentiality. Most credit counseling agencies demand personal office visits. Individuals walking into a "local" debt counseling agency may be surprised to find relatives, friends, or individuals known to them working within the agency (or perhaps, just visiting as a client) which could ultimately compromise confidentiality. Many credit counseling agencies require clients to make numerous visits to their office during the typical five year duration until their debt is liquidated. Enrolled through our agency, clients need never leave the comfort of their home. In addition, our online service provides an opportunity to individuals who do not have transportation, those with time restraints, and those who are handicapped or otherwise confined to their home. Our services are non-intimidating, fast, friendly, simple and effective. Will the Payment Be Reduced on All My Accounts? On most accounts, yes, however, some creditors will not allow a payment reduction, as A payment reduction, incidentally, is not important to all clients. Some clients, for example, are more interested in a fixed monthly consolidated payment, interest reduction, stopping late fees and bringing their accounts current. Some clients even prefer a higher payment, thus accelerating liquidation. Exactly how much your overall monthly payment can be reduced will depend of your mix of creditors and other factors. Most creditors have policies regarding minimum payment, typically ranging from 1% to 4% of the outstanding balance at the time of enrollment. Most credit counseling agencies calculate a client's fixed monthly consolidated payment based on a "fixed" percentage, for example, 3.5% of the total debt placed in the program. Enrolled through our agency, each payment to your creditors are "individually" calculated based on their policy. Using this method guarantees that your payments are set at the "lowest" amount acceptable to your creditors, while at the same time, allowing you the option of increasing your payments whenever extra funds are available. Typically, "total monthly debt service" is reduced by 15% to 40% through payment reduction on most accounts placed in the program. Will the Interest Rate Be Reduced on All My Accounts? Creditors' policy regarding interest reduction vary dramatically, ranging from no change to freezing interest. With interest rates typically at 12% to 24%, interest reduction can save a client thousands, and for heavy debtors, tens of thousands of dollars. Obtaining interest reduction on just one or two accounts in itself may warrant enrollment in the program. Let's look at the following example: 
If a client has two accounts each with a 3,000.00 balance, and one creditor allows an interest reduction to 12% and another stops interest, over the interim the client will save a total of 1,888.21. Consider also that the example is based on a "fixed" monthly payment. Typically, debtors experiencing financial hardship only pay the minimum payment. As a result, liquidation could easily exceed 20 years. This is especially true when late fees, overlimit fees and annual fees are assessed. For most debtors, the interest paid on a 3,000 debt will greatly exceed the amounts listed above. Not all creditors reduce interest, but those that do may save you thousands! What is a Fixed Monthly Consolidated Payment? Upon enrollment in the program, a "fixed monthly consolidated payment" is calculated based on the "lowest" payment amount acceptable to your creditors. While it's true that some creditors will accept any payment amount (rather than nothing), the fact is most creditors have policies regarding minimum payments and will only reduce interest, stop late fees and re-age past due accounts if their minimum payment requirement is met. The amount of your fixed monthly consolidated payment is then forwarded by you to the agency, which is turn disburses the funds to your creditors on a monthly basis. When first applying for enrollment, our agency "estimates" this payment based on the information provided by you. We then assess if you could maintain the payment while sustaining a comfortable standard of living. If so, approval is typically granted. Upon receipt of your enrollment material, the amount of your fixed monthly consolidated payment is re-assessed based on your actual statements and any changes that may have occurred since you applied. Upon completion, an Official Enrollment Package is prepared and sent to you via priority mail. This package contains information regarding the program and your accounts, including a revised estimated fixed monthly consolidated payment. The revised estimated payment is typically the same or close to the original estimate, but in any case, usually extremely accurate. Your "actual" fixed monthly consolidated payment can only be determined once all of your creditors respond to the proposals sent by the agency. Having a fixed payment provides an exact dollar amount in which to budget. You draft a single check each month to ultimately liquidate all your accounts placed in the program. A fixed monthly consolidated payment offers a quick and effective means to liquidate debt. As accounts are paid off, the agency systematically applies the excess amount to other accounts remaining in the program. Can I Still Use My Credit Cards? All accounts placed in the Debt Management Program will automatically be closed by your creditors. This should be regarded as a prudent course to take realizing that it was probably the ease of using these credit cards that caused your current financial situation. In some circumstances, where reason dictates, clients may be allowed to withhold a credit card or two from the program. Examples include:
Upon completing an application, you may request that an account be omitted stating the reason. The agency typically grants legitimate request. You should be aware, however, that some creditors insist that ALL accounts be included in the program, otherwise upon discovery they may deny forbearance. In such cases, the client may have to ultimately include a withheld account(s) or bear the consequences of not including the account. Having a credit card is not a necessity of life. We encourage you, however, to open a "secured" credit card account for emergencies, online purchases, car rentals and other circumstances where a credit card is required. How Will Enrollment Affect My Credit Rating? What affect enrollment in a Debt Management Program will have on your credit report is entirely in prospective with your current credit rating. For the typical debtor in need of a debt management program, enrollment "improves" their credit rating. For consumers enrolled in a Debt Management Program, most creditors report delinquent accounts as "current" after receiving one to three consecutive payments as arranged by and paid through the debt management agency. The process and time frame varies with each creditor and type of account. Some creditors, however, do not re-age accounts and may continue or begin to report accounts as delinquent. You should assume that all accounts may run at least one month late during the initial phase of the program. This may occur even on those accounts that are current upon enrollment. Also, due to some creditors' requirement of waiting until three consecutive payments as paid through the agency prior to re-aging the account, a "past due" status may occur for up to four months and late fees may also be assessed during this period. In most cases, creditors have a system in place so that this initial past due status is not indefinite and typically returned to a current status within one to four months of enrollment. As this is an important issue to most consumers, we have written an extensive article on this subject which we encourage you to read. For more information, Click Here. It is important to weigh not only how enrollment in a debt management program will affect your credit history in comparison to your "current" credit rating, but also how enrollment will affect your credit history in comparison to what your "future" credit rating might be if you don't take corrective action! What If I'm Not Past Due. Will the Program Benefit Me? It depends on your particular circumstances. For example, while a debtor may be currently meeting his or her monthly debt service, it may be a continual struggle to do so. Such an individual is often robbing Peter to pay Paul. This individual may come to realize, however, that their battle is about to be lost—Peter has done run out of money! Whatever the case, sooner or later there may not be sufficient income to meet financial obligations. Once payments are missed, due to expensive late fees, overlimit fees, accrued interest and the increased minimum payments needed to bring past due accounts current, it may become extremely difficult to get back on track. Unless immediate corrective action is taken, it is likely the situation will continual to worsen. If you have more than 5,000 of unsecured debt and you are struggling to make ends meet, you may be a prime candidate for the program. Two Incredible Agencies Working On Your Behalf! Should you elect to enroll in the Debt Management Program, you will have the benefit of having two of the very best debt management and credit counseling agencies working on your behalf. As you will learn, this relationship offers you tremendous advantages. Our agency, The Center For Debt Management,™ was established in 1989 and has been serving the online community since 1992. We are proud to state that we are the oldest and most comprehensive debt management agency on the internet, and to date, we have yet to have a single complaint filed against us with the Better Business Bureau, or for that matter, with any other consumer protection agency. Click here to check out our Reliability Report. Our long-time associate, Family Debt Arbitration and Counseling Services, Inc., was established in 1991 as a federally registered nonprofit charitable organization providing credit counseling and debt management services nationwide. With corporate offices in Candia, N.H. they are registered as a charitable trust with the Department of the Attorney General, Division of Charitable Trusts; the New Hampshire Secretary of State; City of Manchester and Town of Candia, N.H. They too, maintain an enviable record with all consumer protection agencies. Click here to check out their Reliability Report If you are still with us at this point, chances are you are in serious need of financial help and considering the Debt Management Program. Perhaps you ready to apply or may have further questions about our respective agencies and our special relationship. In that you will be submitting your payments directly to Family Debt Arbitration, we fully understand the need to establish trust and invite you to conduct a thorough research. For more detailed information about our respective agencies, our mission, our history and our special relationship, Click Here How Much Does It Cost To Enroll? The program is designed to save you money and unless that can be achieved, you would not qualify for the program. Savings are achieved through interest relief and the process of re-aging accounts, thus eliminating expensive late fees and other punitive charges. Additionally, you need only draft one check each month, reducing your cost of checks, money orders, envelops, stamps and other miscellaneous expenses. In that each client has a different mix of creditors and debt structure, the actual savings vary among clients. Over the interim, from enrollment to liquidation, the program typically saves clients thousands, and for heavy debtors, tens of thousands of dollars. There is a one-time enrollment fee of 50.00 and a basic monthly service fee ranging from 18.00 to 35.00 based on a structured scale. For our typical client, however, this fee is insignificant when compared to the overall savings the program provides. Note: We offer a FREE financial analysis without obligation. There are no fees unless an applicant qualifies for the Debt Management Program and elects to enroll. Because the program is provided through an IRS designated 501(c)(3) nonprofit charitable organization the major cost for these services are voluntarily funded and supported by participating creditors. Bear in mind that while some creditors donate a percentage of each payment to the agency, you are "always" credited the "full amount of your payment." The program is designed to save you money and unless that can be achieved, you would not qualify for the program. Are There Other Options If I Don't Quailify? For most debtors facing financial hardship and having significant debt, there is typically only three reasonable alternatives—enrolling in a Debt Management Program, seeking a Debt Reduction Settlement, or filing for Personal Bankruptcy. One of the most powerful aspects of The Center For Debt Management,™ in addition to the hundreds of debt management articles and resources provided through our website, is that we can assist you in all three areas listed above. When an applicant applies for the Debt Management Program, in analyzing their budget and financial profile we automatically review it to determine what is the applicant's best option. For example, a Debt Reduction Settlement may be a better option, or filing for bankruptcy may be the only option. Sometimes, all of the above may be viable options. Whatever the case, we either approve or deny the applicant for the program being applied for, suggest an alternative course of action and/or counsel the applicant accordingly. Likewise, for applicants applying for a Debt Reduction Settlement, if it is determined that their accounts do not qualify, or it appears that they would be better served using another alternative, they would be duly notified. If, on the other hand, they are a prime candidate for a Debt Reduction Settlement, they would be notified and a Debt Settlement Specialist would promptly cal to discuss their case and to answer any questions that they may have. One of the most powerful aspects of The Center For Debt Management™ is that we can assist you in enrolling in a nonprofit Debt Management Program, in seeking a Debt Reduction Settlement, or in Filing For Bankruptcy. How Do I Know If I'm Qualified and How Do I Apply? If you answer yes to most of these questions you are a prime candidate.
The next step is to apply for enrollment. By completing a specially designed budget worksheet and returning it, The Center for Debt Management™ will assess your needs and determine if you qualify for the program. The financial analysis is absolutely free of charge and without obligation. The results of the analysis will be promptly emailed back to you. We thank you for taking the time to read through this presentation. If you take the next step by completing the worksheet and you are accepted into the program and elect to enroll, we promise you that the time spent will have been well worth it. This is YOUR opportunity to get a fresh start and to begin your journey on the Road to Debt Freedom.
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