“We both never envisioned a financial hardship like the one we experienced, but sometimes the unexpected happens in life. With no where to turn, we felt helpless and alone in the world. We knew we couldn’t go to our friends for advice, so discretion was very important to us. We felt safe knowing we could speak to a Consumer Counselor and receive straight answers to difficult questions, all while keeping our situation completely private. With knowledge in our hand, we were able to make the right decision for ourselves and start the path of becoming debt free.”
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Welcome to our FAQs section
This page has a list of common frequently asked questions and our answers to them. If there is something that you'd like to see answered on here, please ask us.
What is a Debt Management Plan (DMP)?
A debt management plan is a debt repayment program that allows you to make one simple payment a month that will distribute it to your creditors for you. The Debt Management Plan serves the dual role of helping you repay your debts and helping creditors collect the money owed them. Your consumer counselor will review your financial situation and design a workable budget and repayment plan. We will attempt to negotiate late fee and interest rate reductions with your creditors to help you pay off your debts as soon as possible.
Will my employers or creditors know I’ve spoken with a Consumer Counselor?
No one but you will know about your inquiry. Your creditors will know you have an appointment with us only if you inform them. Otherwise, Consumer Counseling will not contact your employer or creditors about your inquiry.
Can everyone participate in the Debt Management Plan (DMP)?
The Debt Management Plan may help many people who are experiencing difficulty making payments to creditors or are unable to make payments. We encourage anyone who is concerned about their debt situation to schedule an appointment with one of our certified counselors. Consumer Counseling will never turn away anyone who requests debt counseling. Your consumer counselor will review with you which course of action is appropriate for your financial situation.
Why do I have to complete a bankruptcy course to receive my bankruptcy discharge?
The new Bankruptcy Act passed by Congress requires individuals filing bankruptcy to complete a Personal Financial Management Course AFTER filing bankruptcy and prior to having their debts discharged.
For more information about including a copy of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, see www.uscourts.gov/bankruptcycourts.html
Who is qualified for a consumer counseling debt settlement program?
Consumer Counseling’s debt settlement program is for people facing financial hardship who can no longer handle repaying their unsecured bills. Consumers who are late on paying their debts, have little or no ability to pay their debts in the future or are facing a possible bankruptcy may qualify for debt settlement.
How does Consumer Counseling’s Debt Settlement program, work?
When you enroll in our debt settlement program, we set you up on a monthly payment that is substantially lower than your current minimum monthly payment. In the meantime, our trained debt settlement specialist negotiates with the credit companies to get them to agree to substantially lower amount than you owe. Once you have saved enough money and a creditor has agreed to a pay off, our debt settlement team pays off the credit card company with a lump sum settlement that is a percentage of your original balance.
Does Consumer Counseling’s Debt Settlement Program deal with debts other than credit cards?
Yes, Consumer Counseling’s debt settlement experts can also settle medical bills, personal loans, repossessions, department store cards, gas cards, and accounts in collections. Since we negotiate with your creditors, we are unable to work with mortgages and cars, because they will be able to recover the property in the event that you do not pay according to the terms they stipulate. However, if you are having trouble with your mortgage payments and wish to remain in your home, please mention that to one of our experts and our trained legal team can evaluate your situation and possibly help you remain in your home through loss mitigation.
What are some of the signs Consumer Counseling sees for consumers who need credit card debt settlement?
You don't have any savings. You make minimum payments on all your credit cards. You get calls from debt collectors. You use credit cards for things you used to buy with cash, such as groceries, gas, or utilities bills. Your credit card debt to income is higher than it should be. You have more than three major credit cards that you are struggling to make payments on. You lie to your spouse or other family member about your spending or hide credit card statements from family members. After you pay your credit card bill, you increase your balance by the same amount (or more) the following month. You're at or near your credit limit on your credit cards. You write a check hoping that you have enough time to make a deposit before it clears. You're afraid to look at your statements each month. You lose sleep thinking about your debt. Your debt is putting an added stress on your marriage.
Will I need to refinance if I do a mortgage loan modification?
A loan modification will take the mortgage you now have and change the interest rate and payment requirements in order to achieve a fixed rate. A change in rates and payments does not result in the need for a new closing, legal fees, survey, appraisal, or taxes. In contrast, if you "refinance" a loan you'll be required to have a closing and forced to pay a variety of fees and taxes.
Will my bank allow for a loan modification?
According to the Center for Responsible Lending, citing a Joint Economic Committee Report, foreclosure costs a bank more than $50,000 on average per property. Foreclosure filings on a month-to-month basis in 2007 compared with 2006 were up by as much as two-hundred percent in the hardest hit markets. Foreclosures for 2008 are expected to be even higher in lieu of current economic conditions. Banks would much rather work with Loan Modifications and mitigate your loan rather than foreclosing.
What if I can no longer afford my mortgage payments? Can Consumer Counseling still help me?
Yes. If you are certain that you cannot afford your home any longer and wish to sell, we can help you to secure a short sale payoff or a deed-in lieu of foreclosure agreement with your lender. Often times these agreements can be arranged at low or no cost to you. Most consumers have many options they are unaware of, so it’s important that you speak with a Consumer Counselor specialist right away.
What happens after I have submitted my information to Consumer Counseling?
One of our financial specialists will contact you to discuss the details of your financial situation as it pertains to credit counseling, debt management, debt settlement, bankruptcy counseling or loan modifications. Our professional, certified consumer counselors will assess your financial situation, assist in creating a spending plan, and discuss options for debt repayment or settlement.
Is my information submitted through ConsumerCounseling.com secure?
Yes, Consumer Counseling is committed to maintaining your privacy and online confidentiality. Consumer Counseling has produced a privacy statement that outlines the steps that we have taken to ensure that any information that you provide is kept confidential and cannot be used improperly.
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