How does a debt management program impact my credit score?
This is a great question! The debt management program is a structured plan designed to help pay off your debt in an efficient and timely manner. Many of our clients are struggling to make minimum monthly payments which can cause them to fall behind and to receive late fees which add to balances and can negate the payments you are making. Once your Debt Management Plan has been established, you begin making consistent on time payments to your creditors therefore helping to improve your credit score. Experian says: “The impact on your scores may be minimal, depending on how the payments are managed and if you have other positive accounts. The most important thing is that you must make sure that the company will immediately take over the payments so that you never miss a payment in the transition to their service. As long as all your payments are made on time, it won’t matter who paid them and there is no scoring issue from that aspect.” Typically, our clients notice improvement in their score within the first year they are on the program and by the time they make that last payment, they experience relief and pride in seeing what they’ve accomplished to help improve their credit and ultimately their future.
Back to Questions
Top 5 Questions
- What services do you offer?
- Why should I come to CCCS of Rochester for help?
- I'm only a little behind on my bills, can you still help me?
- Does the Debt Management program reduce the overall balance due to the creditors?
- What is the difference between a settlement and a Debt Management program?
Ask a Question