How will a debt management program affect my credit?
• 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plan objective is to help you get out of debt, lenders may avoid issuing new credit cards until you have completed or withdrawn from the plan.