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Listed below are the most
frequently asked questions that we receive. If your question is
not listed, please
e-mail us for
further information.
How
does your program affect my credit report?
This really depends on the creditor. While most creditors will
waive late fees and re-age your account, it is important to
consider this as an extra incentive to work with a debt
consolidation company especially when you are behind in
payments. Some creditors will make a notation in your credit
report such as "Managed by Credit Counseling."
Generally it is neither a plus nor a minus on your credit due to
the fact that you are still making the payments. Also, your
payments are computed based upon each individual creditor's
requirements (what they deem to be acceptable). We do not report
to the credit reporting agencies however, it is in the sole
discretion of your creditors whether or not they report your
credit counseling status, with most credit agencies
acknowledging our program is a responsible way of dealing with
overextended credit issues. For more information see Liz Pulliam
Weston
article.
Why
will creditors lower my interest rates for you?
Creditors realize that we are many times the last resort for
many people and they would prefer not assigning the account to
the collection agency. They also realize that we work with
people on debt management and budgeting. Since you have made a
commitment to us, they feel that you are a better candidate to
make monthly payments to us as opposed to filing bankruptcy. We
also eliminate an awful lot of paperwork for the creditors and
they appreciate that
Does
Kimberly Credit Counseling actually loan me money?
No, we do not lend any money, and this is not a consolidation
loan. Kimberly Credit Counseling negotiates with your
creditors to lower your payments and interest rates with the end
result being similar to a consolidation loan without the
collateral and credit checks.
Why shouldn't I file for bankruptcy?
Most people file bankruptcy to escape bill collectors. With Kimberly
Credit Counseling, we offer a safe and sound alternative to
bankruptcy. As with most people interviewed, surveys show most
people would rather not file bankruptcy. By enrolling in a
Kimberly Credit Counseling program, our satisfied customers are
able to avoid the bankruptcy mistake.
I'm not behind on my bills, but I'm barely making it by each
month. I've also noticed that my balances never seem to go down.
Can I enter your program even though I'm current in my bills?
Yes. Most creditors
realize that it is well worth working with people who realize a
problem may be on the horizon.
What
exactly is unsecured debt?
Unsecured debt is when a creditor holds no collateral. For
example, an unsecured debt is usually in the form of: credit
cards, department store cards, medical bills, and gas cards. No
form of collateral such as a home or car was utilized to secure
the "loan" for services rendered or goods received.
With a secured loan, and as a precaution against
"default" (non payment) what is used as
"collateral" for the loan could be liquidated.
When will my first payment be due?
When you enroll in our debt management program, you have a
choice to pick the payment date that's best for you. You may
choose any day from the 1st to the 30th of every month, keeping
in mind that your first payment will be due within the first 30
days after enrollment.
Can
I still use my credit cards?
Since your creditors know you have a sincere desire to get out
of debt, usually the accounts that you have included in your
debt management program are either frozen or closed until you
are debt free.
Do
I have to put all of my creditors on your program?
No, it is entirely up to you which accounts you include in the
program. Many people choose to keep at least one credit card for
travel or emergency purposes.
Can
you help if I am being charged late fees and if I'm past due on
my accounts?
Most creditors will waive late fees, over limit fees and will
bring your accounts current. Most creditors will also re-age
your account (showing no behind payments are due) once enrolled
in our program.
Should
I consider getting a consolidation loan instead?
We don't recommend it. Besides, loans are what got you into
trouble in the first place. Most unsecured loans have high
interest, and if you get a home equity loan you are now securing
the amount of the loan (and in this case it 's your credit card
debt) with your home. If you default (not make a payment) you
could jeopardize loosing your home.
Will
I continue to get phone calls and collection letters from my
creditors?
Most creditors will stop collection activity once they receive
the first payment.
Must
I remain on the program until I am debt free?
No. You are only enrolled on our program for as long as you want
to be. You may terminate the plan at any time for any reason.
What
information should I have on hand in order to get started?
You will need all of your creditors names, phone numbers,
account numbers, balances, interest rates and required minimum
monthly payments for each account. It is a good idea to gather
your most recent statements. All information must be accurate
and current in order for us to process your application. If
information is inaccurate then your creditors may not accept you
on the program.
How
do you figure what my monthly payment will be?
Each creditor has specific guidelines. Depending on your
balance, creditors require a certain amount of that balance for
your monthly payment. We negotiate the lowest possible monthly
payment that you can make in addition to keeping you in good
standing with your creditors. There is no penalty to send more
each month, if you can do so it will only help with getting you
out of debt sooner.
Click here
for your free debt consolidation quote now!
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