NFDM Debt Management Programs
If you are deep in debt, the NFDM can help eliminate it through a debt management program. A debt management program can:
- Assess your financial situation
- Negotiate with your creditors to lower interest rates, have your fees lowered or waived and your accounts re-aged (from past due to current)
- Make a payment plan for you
Confirm with your creditors that they've accepted the concessions your agency discusses with you. You're still liable for mistakes or miscommunications between you, your agency and your creditors.
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Once a person agrees to a debt management program, the agency generally prohibits the debtor from incurring any more debts during the plan.
A counselor should meet with you to help you create a monthly budget and assess your debt. The agency will negotiate with your creditors to obtain better terms for you. You make one monthly payment to your debt management program, and it pays your creditors.
Example: Kyle makes a monthly payment of $508 to his debt management program agency. The agency pays his four unsecured creditors.
Kyle
$508
Agency
$500
$8
Creditors
$150 Visa
$150 MasterCard
$50 Sears
$150 Northwestern Hospital
Make sure the agency is paying your creditors on time. Late payments by your agency will negatively affect your credit.
Typically, agencies only work with unsecured creditors, such as credit card companies or student loan organizations. Ask your counselor how long it will take for you to complete the debt management plan. A schedule should be set up for you. A plan may take four to six years to complete. After you enroll in a debt management program, creditors typically close your accounts and restrict future charges. You may be required to agree not to open up any more accounts or incur more debt.
The NFDM is accredited by both the Better Business Bureau and National Association of Consumer Credit Counselors. They are licensed in most states. It is free to enroll in NFDM's debt management program, called Right Track. The NFDM's Right Track debt management program has helped more than 50,000 people get back on track.
Most lending agencies, including banks, credit card companies, mortgage companies, and credit unions, use the Fair Isaac Corporation (FICO) Credit Score, a number between 350 and 850, to determine credit worthiness. A number in the mid-600s or higher often means a low credit risk. A person with such a number will have an easier time getting credit.
When you enroll in a debt management program, a comment appears on your credit report noting that you are paying your account through a debt management program. Since 1999 Fair Isaac -- the company that developed FICO scores -- has ignored credit counseling comments when calculating a credit score. If you make your monthly payment to your debt management program and the agency pays your creditors on time, your credit score should improve. Sometimes, being enrolled in a program can make getting new credit more difficult. Creditors may decide that you have your hands full with the debt you currently have.
Defeating debt and managing your credit opens doors to creating the lifestyle you want. Learn how NFDM can make your dreams of owning a home come true.
