We ask that you make a small initial contribution to our organization. This enables us to provide this service to the public and to additionally enable us to provide other services at a not-for-profit basis. We also ask that you make a small monthly contribution that will be calculated into your monthly payment. These expenses that you incur are truly miniscule in relation to the savings that we will obtain for you.
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2.) Can I still use my credit cards once I'm on the program?

No, once a credit card is placed on the program, the account will be closed and you can no longer utilize that card. However, you are encouraged to leave off the program any account that you use for business purposes.
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3.) Can I make a larger payment than my monthly amount?

Yes, you can always send more money to pay down your bills
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4.) What if I miss a payment?

If you miss two or more payments your creditors will remove you. It is extremely important to maintain consistent monthly payments and remain on the program until your balances are paid in full.
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5.) Why can’t I do this myself?

In some cases, you can negotiate directly with your creditors to have positive information reported on your credit report or to even work out a payment arrangement. However, as the premier leader in the debt reduction field, we are able to lower your interest rates, stop late fees and over-limit charges.
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6.) What’s the difference between for-profit and not-for-profit companies?

Under the current banking laws, a debt reduction company can either operate as a not-for-profit company or run under the supervision of an attorney.

An attorney will most likely charge you an exorbitant fee as opposed to a small donation that not-for-profit company would. Some attorneys provide good service and most do not. However, what most attorneys and debt settlement companies do not tell you is that the banks have changed their policy to ONLY work with not-for-profit companies. Why do you think this is so?

Not-for-profit companies charge relatively low fees and they must be licensed by the federal government (501c3 status) and usually the state that they do business in. Some states, like Maryland and Florida, have very lenient banking laws, so I would be very leery of utilizing the services of an agency in those states. We are one of the few credit counseling agencies licensed by the New York State Banking Department. In fact we are one of fifteen in the entire state. If we advise you improperly our license is on the line.
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7.) How does the program affect my credit?

This is the most frequently asked question that we encounter. And the correct answer is – “ It depends”. Do not be lead to believe differently by anyone.

Some lenders may even view credit counseling as an encouraging sign that you are getting your debts under control.

If you have poor credit when joining our program your credit rating will actually IMPROVE after the first year of consistent payments. Being reported as late or delinquent can certainly hurt your credit score. Some lenders even view credit counseling as an encouraging sign that you are getting your debts under control.

If you have good credit, then it could be considered a negative. BUT, good credit does not necessarily mean that you are current on your bills. All lenders look at your entire credit file. Factors that they consider are: how much you make, how much you owe, payment history, etc.

One of the most important factors of your credit file is the debt to income ratio. If you are simply making minimum payments, you may have a high debt to income ratio, which lenders may consider negative. Some lenders may even recommend that you undergo our program to pay down your bills before they grant you a mortgage or even an unsecured loan. The credit score formula utilized by most lenders, FICO, ignores any reference to credit counseling that may be in your files.

Ultimately, our debt reduction plan can only help you. Offering you lower finance charges to achieve debt reduction more rapidly, thereby improving your primary credit score factor.
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