Consumer counseling credit card consolidating credit debt
Even though there are differences in calculations from bank to bank, we can still apply some national averages and come up with a rough estimate of what your monthly DMP payment might look like.Example: You have ,000.00 in total unsecured debts across 4 credit cards and one signature loan with a finance company.Most of this can be handled in one call to the counseling agency if you are prepared with an outline of your income, and your monthly bills.Your monthly payment is set up as an auto-draft from your personal bank account for the same day each month.And, there are qualifications to meet in order to be enrolled in their Debt Management Plan (DMP).There are also situations where you would simply be able to financially commit to this type of program for debt relief. You will need to speak with a license counselor to get a direct lower payment quote. Here are some immediate questions you can ask yourself that will help you get a feel for the affordability of a consolidated payment plan: Answering the questions above should help you readily identify whether a credit counseling service will work for you.
There are benefits and drawbacks to working with a credit counseling service.Using an average of 2.1% of your total 22k debt as your new monthly payment for these 5 accounts, you would pay a fixed 2.00 every month until your debts are paid off in full.You can quickly add up all of your unsecured (credit cards, store cards, gas cards, etc.), and use the above 2.1% calculation to see how much you could save each month by working with a credit counseling agency.Nonprofit credit counseling services will waive the monthly fees in some instances if you fit a certain criteria.
What do you get in return for the fees you pay the agency?
A repayment plan using credit counseling to consolidate your debt will typically last 4 to 5 years. Your fixed payment is due on the same day each month for the duration of the plan.