For many people, the announcement last year that the three major credit reporting agencies would remove paid medical debts from credit reports was a welcome relief. Medical bills and the confusion those bills and insurance cause, has led to many people owing debts they never planned for. Here is an update on the changes to credit reports, credit scores, and how to manage medical bills.
Debt Management Plan
If you are falling behind in your creditor payments and receiving collection calls, a debt management plan might be a good option for you. American Financial Solutions (AFS) financial education, and credit and debt counseling services can help. Although you may find it hard to take that first step and contact a counselor, it is a good step to take. You are not alone, millions of Americans have fallen into financial trouble, and more do every day, as a result of the rising high costs of living caused by the recession. Foreclosures on people’s homes are also at an all time high, with repossessions of cars following a close second. A properly structured debt management plan could be your way out of debt.
Debt and credit counseling is available from AFS certified credit counselors who will review your entire financial situation, help you to prepare a detailed budget which will list all of your income, expenses and debt. They will help you find an option that is right for you. If a debt management plan is a good option, they will structure a plan to allow you to repay your creditors with a payment that works within your budget. Best of all, they will consolidate all of your debt payments into just one payment per month on the day of your choice. AFS is a registered, 501(c) 3 non-profit agency, part of the North Seattle Community College Foundation, and a proud member in good standing with the Better Business Bureau. We are accredited by the Council on Accreditation and the National Foundation for Credit Counseling.
A good candidate for a Debt Management Plan has a high debt to income ratio and is having trouble making minimum payments. They may have fallen behind on their payments and cannot come up with the current minimum payment including the late payments and fees. Their budget shows that they can afford to make the DMP payment which will help them to pay off the debt in a much shorter period of time than they could on their own, if creditors wave penalties and lower interest rates. They are committed to becoming debt free.
You can call an certified credit counselor to review your debt, Monday through Friday from 6 a.m. to 7 p.m. Pacific Standard Time for more details or just complete the online application form to get started and find out if a debt management plan is right for you.
Your debt management plan could be the first step towards financial freedom. American Financial Solutions will also provide you the educational tools you need to plan and prevent credit problems in the future. American Financial Solutions website www.americanfinancialsolutions.org is packed with resources and useful information on debt management plans, how to budget, and consumer rights. It also features an online video class series called “Investing in Yourself” with topics from reading your credit report and budgeting to a special segment just for young adults!
If you are in falling behind, don’t wait. Speak to a credit counselor now and ask them about debt management and whether it’s the right solution for you.