Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How will a debt management program affect my credit?

0
Posted

How will a debt management program affect my credit?

0

A- Debt Management agencies work with many creditors who will re-age or bring current your account thereby removing the current delinquency rating on the account. This is done by making consistent payments through the program.

0

• If your credit report already reflects any late or missed payments, then the debt management plan will likely improve your record by facilitating consistent, on-time monthly payments. • Also, if you were late in the past, many creditors will report you as “current” as long as you make all of your monthly payments on time. • If you have never missed a payment, then sending reduced payments to creditors or getting interest concessions through the Debt Management could put a blemish on your credit report. • A creditor may report a reduced payment as “late” or reflect that payments are being administered by a credit counseling agency. • Since the plan objective is to help you get out of debt, lenders may avoid issuing new credit cards until you have completed or withdrawn from the plan.

Related Questions

What is your question?

*Sadly, we had to bring back ads too. Hopefully more targeted.