Debt Management

Family Life Credit Services’ (FLCS) certified credit counselors can work with you to create a successful program that will help eliminate your debt. When you enroll on FLCS’s Debt Management Program (DMP) we will work with your creditors to reduce or eliminate interest being charged to your account, reduce/eliminated late & over-limit fees, reduce your monthly payment and develop a successful plan to achieve your personal financial goals.

• Do you spend your days trying to figure out how you are going to make the next payment to your creditor?
• Do you lie awake at night wondering how you will buy groceries for your family?
• Are you experiencing the feeling of hopelessness and embarrassment due to your financial situation?
• Have you tried to talk to friends and family about your situation but you are unsure if the advice you are getting is best suited for you?

A Debt Management Program can be a wonderful tool to repay your debt in a timely manner as most consumers have the ability to pay down their debt within 3-5 years with the help of a debt management program. This is due to the reduction in interest and reduced payment amounts. Working closely with one of FLCS’ certified credit counselors will help to determine if this is a good option for you.

What is a Debt Management Program?

Another name for a Debt Management Program is a Consolidation Program. A Debt Management Program is the process of consolidating all your unsecured debt (such as credit cards, hospital, clinic, & dental bills, store cards, personal loans, etc.) and combining them into one simple payment each month. This consolidated monthly payment is made to the Debt Management Organization. Each month, the Debt Management Organization will disburse payments to each of your creditors in order to satisfy the agreed-upon terms. The common benefits of a consolidation program would be reduced interest rates, reduced monthly payments and reduced timeframe for payoff.

Is a Debt Management Program a Loan?

A Debt Management Program is not a loan. The program allows you to make one payment each month that is divided up and disbursed to your creditors on a monthly basis. Family Life Credit Services is not a loan company.

Why would I send my payment to you?

The program is set up to help eliminate some of the challenges of repaying your debt in a timely manner. Over its 20-year history, Family Life Credit Services (FLCS) has established excellent relationships with creditors. We negotiate with these creditors to eliminate late fees and over-limit fees, as well as to reduce and sometimes even eliminate interest rates. We help to manage your repayment process and require you to make one consolidated monthly payment to us which is then forwarded to your creditors according to the agreed-upon terms.

Why can’t I pay off my creditors on my own?

In many cases you can. There are instances where you may see your interest rates and minimum payments begin to increase for one reason or another. If you have attempted to call your creditors and work something out internally without success we may be able to help. If you find that you are not making any progress paying minimum payments and are beginning to accrue late fees, over-limit fees, and higher interest rates, you may want to consider a less stressful solution by allowing Family Life Credit Services to handle your creditors for you.

Why won’t creditors lower interest rates for me?

The number of clients calling creditors to ask for reduced interest rates and payments is skyrocketing. In many cases, credit card companies refer clients to credit counseling agencies to determine whether the client is actually experiencing financial difficulty or hardship. If the credit counseling agency finds that the client is experiencing hardship or financial difficulty but still has the ability to pay on their debt, the credit counseling agency has the ability to work with the creditors to reduce interest and payments. Most credit card companies see credit counseling and debt management programs as an opportunity for financial education and budgeting assistance, which ultimately builds better consumers.

How long will it be before my debts are paid?

Most clients on a debt management program are able to pay their debt off in three to five years. If you continue to pay only the minimum payments that are due your creditors, it can take you from 10 to 30 years to pay off your debt and will cost you thousands of dollars in interest. With a debt management program, you make one fixed payment each month. As accounts are paid off, your monthly payment stays the same, and the difference is added to accounts with the highest interest rates, thereby helping you pay them off sooner.

How will a debt management program affect my credit?

Upon enrollment in a debt management program, all the accounts placed onto the program will be closed. Any time you close an account your credit can be negatively affected. FLCS does not report to credit bureaus. Most people starting a debt management program do so because they are overextended financially and their credit score has already been affected or will soon be affected. Some creditors do report that you are on a debt management program. The program is not in place to build your credit, but exists to provide a means to pay your debt off in a reasonable time, with a reasonable payment, during a time of financial uncertainty.

What kind of fees will I be charged for Family Life Credit Services’ debt management program?

Your credit counseling is free. Depending on your state of residence, if you decide to begin the debt management program there may be a onetime set-up fee which will never exceed $50. There is then a monthly administrative fee based on what you can afford which will also never exceed $50 – no matter how much debt you have or how many creditors. The amount of the monthly administrative fee is also dependent on your state of residence.

Can I still keep my credit cards while on this program?

None of the cards you include in this program can be used. They will be considered inactive. Creditors do not allow new debt to be added while on this program. You are allowed to keep one card off the program.

How do I begin?

You can start with us several different ways. You may use the internet and fill out the online application. A counselor will contact you to begin the process. You can also call us toll-free at 1-800-747-9307 and speak with a counselor right away or you may stop into our office and meet with a counselor in person.

All information is kept strictly confidential.