Does credit counseling hurt my credit score?

This is a very popular question we receive regarding your credit score. Its important to know how your credit score is calculated to explain this answer in detail so let’s dig in.

• 35% of your credit score is measured by making payments on time
• 30% of your credit score is measured by your dti (debt to income) – the more debt you have the lower your score

The rest of your credit score is measured by how many accounts you have open, how long they have been open, and other factors.? According to MyFico.com, credit counseling does not hurt your credit score. Debt management programs have an enrollment fee and its important to know that the first payment does not go toward your creditors. Its not until the second payment drafts out that the funds are distributors to your creditors as it typically takes 30 days to set everything up for your lower interest rate, which takes anywhere from 1 to 3 months of payments on time before it kicks in, depending upon the creditor.

Debt settlement on the other hand does not make payments regularly to your creditors, but rather makes payment into a settlement account where a lump sum grows.? The lump sum allows? the law firm or yourself to have better negotiating power to offer a settlement amount.? Creditors can sue you if they like but its costly for them and counterproductive. You can also owe a tax liability for the amount of money you did not have to pay. If your tax rate is 15%, $5,000 of forgiven debt will carry a $750 tax liability. However, you can petition? a waiver from the liability if your assets are lower than your liabilities by filling out form 932

To find out more about the pros and cons of debt management and settlement services, visit Debt Management Guys .com to speak to a live representative by clicking the Call me button, entering your phone number and hitting connect. Or you can simply fill out the form to request more information, or by simply dialing 678.561.DEBT today. You have nothing to lose and only options to gain.

Popularity: 2% [?]

Chase Letters To Clients Contradict Their Past and Future Settlement Policy

This is an interesting example of how creditors try to influence their cardholders to PAY UP IN FULL on their credit card debt. As more and more people enroll their credit cards into debt settlement programs, more and more creditors will be combating the program, and attempting to collect the debts directly, via their “in-house settlement center”, or by referring them to a “credit counseling center”.

As a recent example (view this settlement offer by Chase), Chase has been sending out letters to their customers notifying them that they have been contacted and notified, that they are being represented by a debt settlement company in connection to their Chase account. The bold title of their letter states, “Chase doesn’t deal with debt settlement companies.” Attached, you will also find a settlement from Chase, as recent as today, and for 25% of the debt amount!

The letter does go on and suggest, and ask, that the client does in fact contact Chase directly to learn more about their “interest rate reduction” programs, as well as get a “free referral to an accredited, non-profit credit counseling organization.”(Credit card companies started credit counseling companies like CCCS and CCCS receives compensation from them.)

Let this serve as an education tool, to help make you the client aware of these letters you may receive, as we’re all very aware Chase isn’t the only creditor sending these letters out. Knowing what to expect from creditors and their fear tactics will enable you to successfully complete your debt settlement program so you can reap the rewards of payments you can afford to pay.

By knowing about fear tactic letters to try and get you to continue making high interest payments to them, or their majority owned counseling center, will allow you to stay the course to repairing your financial future.

Creditor will do, say and write just about anything they can to potentially get your hard earned money, each and every month…interest and all, so you can see why they don’t like debt settlement alternatives, but they eventually agree to lowered settlements, and they have been doing so for years, as in the case of this 25% settlement offer.

To find out what you qualify for, call 678.561.DEBT (3328) or visit http://www.debtmanagementguys.com and fill out the form to be contacted by one of our representatives.

(Don’t forget you can click the “CALL ME” button to be connected with a live representative, after entering your name, phone number, and the connect button.”)

Popularity: 17% [?]

Debt Settlement in 47 States, including Rancho Santa Margarita, CA, Miami FL, and Phoenix AZ

Debt Management Guys can counsel you on debt management and debt settlement programs tailored to your state and financial scenario.? Currently debt settlement is very high in Rancho Santa Margarita, CA, Phoenix, Arizona, and Miami, Florida, and we can assist consumers in 47 states.
To find out what you can settle for in a customized payment that you can afford, call? 678.561.DEBT or visit our homepage to click the call me button to have us connect you with a live representative toll free.

Simply click call me twice on the home page, and enter your name phone number, and don’t forget to? hit the CONNECT button.? With rates as low as 0%, we have different options for your credit cards, personal loans, medical bills, collections, and judgments over 6 months old.

Popularity: 1% [?]

Great News – There Are 0% Interest Rates On Certain Debt Management Plans

BREAKING NEWS – Now there are as low as 0% interest rates in various debt management plans. Creditors such as Firestone, Tiresplus, First Premier Bank, and a few others are offering as low as 0% down to get on a debt management plan to pay back your debt. Never has there been such a no brainer program for those who are suffering from high interest rates, or late payments.

Most people know that if you miss? a payment, your credit card company can raise the rate over 20% if it isn’t already causing over 80% of your monthly payment to go in their pocket. Why do you think they are so happy to give out credit cards? If you struggle to make just the minimum payment, you will pay back your original balance at least 4 times over.

The Debt Management Guys would like to help you get out of debt and pay that balance down. To find out what you qualify for,? visit ourhomepage and click the call me icon to type in your phone number. We will connect the call for free with one of our live representatives who will offer you a no obligation quote, or you can call us direct at 678.561.DEBT today.

Popularity: 1% [?]

How Can a DMP Lower My Interest Rate?

Wondering how a debt management plan works? Its easier than you think. Your credit card company won’t tell you that you can get a lower interest rate in a debt management plan because they want you to pay the full balance back at higher interest rates. If you can afford the payments but your interest rate is too high, you may want to consider a dmp? if contacting the bank has caused little to no success. However, you must know that enrolling your credit card balances in a debt management plan requires your cards to be closed, meaning you simply cannot charge on that card until the balances are paid off. The important thing to keep in mind is maintaining timely payments since 35% of your credit score is measured by not missing payments. Also, in a dmp you can pay more than the recommended balance as there is no prepayment penalty.

What Might Your Interest? Rates Drop To?

(Keep in mind these are subject to change at any time)

Capital One 7.4%

Bank of America 9.0%

Chase 6% or 10% depending upon the balance

Juniper? now a case by case scenario but was previously 5.9%

HSBC (Household Bank) 9%

Wells Fargo 7.3%

American Express 7.90%

FIA Card Services 15.90%

Wells Fargo Card Services 7.30%

Citgo/Citibank 9.90%

Discover Card 6.99%

Macys-All Divisions 8.00%

Bank One – First USA 6.00%

Direct Merchants Bank 9%

Fashion Bug * 8.00%

HSBC/Discover 9.90%

First Premier Bank 0.00%

First National Bank of Omaha 9.90%

Goody’s/WFNNB 10.00%

Providian National Bank 10.00%

and many more.

Keep in mind that these rates are subject to change at any time by the creditors. Some may be higher, some may be lower. The only way to find out what you qualify for is by contacting us today.

Now, if you are currently more than two months behind on your payments, then your best option may be a debt settlement program

To find out what you can qualify for, contact the Debt Management Guys today at
1.800.442.8004 ext 100 today.

Popularity: 1% [?]