Get Out of Debt
Get out of debt faster and more easily by using the most optimal program tailored for your personal situation.
Get out of Debt, Start Online.
“I was living from paycheck to paycheck. I wasn’t budgeting until I met you all. I learned how to read my credit report, budget, and build wealth.
I’m less stressed out now and I have savings. I’m happy —very happy!”
Get Out of Debt FAQ
Q. Get out of debt quickly - What factors influence the speed?
A. The amount and frequency of payments, and interest rates. The faster you pay it off, the less interest will be charged.
Q. Get Out of Debt Success - What factors influence success?
A. Financial ability to repay, personal commitment, using a proven pattern of repayment, getting interest rate reductions, paying more frequently or higher amounts when you can, and getting help to do it.
Q. How do I get my interest rates lowered?
A. 1) Ask the creditor for a lower rate, or 2) have a debt management agency do it for you.
Q. How do I get the balance owed lowered?
A. Usually you can’t without bankruptcy. However, there is a practice known as “debt settlement”, where you refuse to pay the creditor until they will accept less. Note that going through this process usually involves legal action by the creditor, which will add to your balance. On top of that, the debt settlement company charges a fee; frequently 15% or more. In some cases there is not much saved from the original balance, and that is part of the reason the Federal Trade Commission (FTC) is enforcing very strict rules on those companies. Also, you credit rating during and after the settlement process is damaged nearly as much as formal bankruptcy, and stays on your credit report for 7 years.
Q. How does a Debt Management Program work?
A. Certified counselors seek to understand your concerns, your personal circumstances and situation, and your financial goals. Next they collect and evaluate income, expenses, assets and liabilities, analyze your financials, then help you with spending plan development. Then we review your options available to help you reach your goals.
When you select the option of a Debt Management Program (DMP), we prepare you for what to expect in your personal situation with your particular creditors. We then prepare and send an agreement to you. Once you return the agreement and have a date selected to start the DMP, we contact your creditors and submit proposals for your lower interest and repayment rates. Then when your first payment is due, we process it and distribute it to your creditors. Thereafter, you make one monthly payment to Alliance, and we continue to disburse your payments to your creditors. A counselor will contact you occasionally to update you on your program status, check on your statements from the creditors, and solicit feedback. As each account is paid off, we will work with you to determine the best strategy going forward. As a client, you can access detailed information about your DMP anytime by accessing our website or our customer information line.
Q. What are the advantages of a Debt Management Program?
A. There are a number of advantages:
- Consolidate included accounts into one easy monthly payment
- Pay off your debt faster
- Lower your interest rates
- Stop collection calls
- Eliminate late and over-limit charges
- Build a realistic budget and financial plan customized for you.
Q. What is the cost of a Debt Management Plan?
A. Counseling sessions are performed at no charge. For a Debt Management Program (DMP), there is typically a one-time enrollment/set-up charge, and a monthly fee to for the cost of administering your DMP. There are no deposits, no retention of first payment, and no closeout fee. You may be eligible for a fee waiver under our Fee Policy Guidelines.
Q. What do I do if I do not have all of my creditor information
A. With your approval, we can obtain a “Consumer Education” copy of your credit file and import the information we need directly into our software. The balances and account numbers of your credit accounts will be placed into your credit counseling account for review and analysis as you work with a counselor. This is a “soft pull” and does not affect your credit score. Note that sometimes credit report data can be outdated or incorrect.