How Does a Debt Management Plan Impact My Credit?

How To Enroll In A Debt Management Program

If you are thinking about enrolling in InCharge’s debt management plan to get control over your credit card debt, here’s what you need to know.
  1. You must qualify. To qualify for InChage’s debt management program, you need to go through a credit counseling session. You can do online credit counseling or over the telephone at the number above. During credit counseling, you’ll provide information about your income and budget. We’ll pull a copy of your credit file to see your total credit card debt.
  2. We’ll provide a solution. Depending on your income and your overall debt situation, we’ll provide you with a debt relief solution. This solution may be a debt management program. If you do not qualify for a debt management program, we may refer you to a bankruptcy attorney.
  3. We contact your creditors. When you enroll in the debt management program, we contact your creditors and request participation on your behalf. At this point, your creditors may agree to grant you lower interest rates.
  4. Your payments are consolidated. On a debt management program, your payments will be consolidated into one convenient monthly payment that you pay to InCharge.
  5. InCharge pays your creditors directly. Each month, InCharge will pay your creditors directly. You will continue to receive statements from your creditors. We recommend you check them to verify that payments have been received and your balance is declining. As long as you continue to make your consolidated debt payment to InCharge each month, you will become debt free in 3-5 years.

Some creditors may require you to be on the debt management program for 3 months (with on-time payments), before they grant you lower interest rates. Once these lower interest rates have been granted, you should see them reflected on your credit card statements.

You can always pay more than the minimum amount required in your debt management program, but never less. If you are going to pay more than the minimum payment on a one-time only basis, please contact our Client Services Department, letting them know that this will be one-time only and what amount you will be paying. They can make adjustments on your account and the posting of your payment will not be delayed. If you plan to pay a higher amount regularly, please also contact Client Services so they can revise your account.

Creditor calls

You may receive collection calls. In some cases, it may take up to three consecutive on-time payments through the plan before it stops calls from debt collectors completely. Should a creditor call, please inform them that you are working with InCharge Debt Solutions. If they call again, notify your counselor at 877-486-4916, and he or she will contact the creditor. It’s important not to ignore any mailings or calls from your creditors. Please keep us informed of any contact you have from your creditors or their collection agencies as soon as possible.

Is the InCharge website and data system secure?

InCharge has a documented Privacy Policy and strict standards to ensure data security. Our website is McAfee-secure and tested regularly. It’s also VeriSign Secured which means we use encrypted data transmission. All information you provide is held as strictly confidential. Read more about How We Protect Your Personal Information.

Why are certified financial counselors important?

When you’re struggling with financial burdens, the last thing you need is bad advice from either poorly trained or sales-oriented advisors. InCharge is a leading nonprofit organization that employs only Certified Financial Counselors who are well-trained, monitored and audited. They are all experienced in working one-on-one with people like you to apply proven techniques and solutions to improve your financial situation. Our Financial Counselors are certified through national organizations including the Institute for Financial Literacy (IFL), the Association for Financial Counseling, Planning and Education (AFCPE), National Foundation for Credit Counseling (NFCC). Housing Counselors are certified through national organizations such as the National Council of La Raza (NCLR), NeighborWorks America and the NFCC. As part of these certifications, counselors pass a series of exams and continue with ongoing education to maintain their certified status.

Is counseling confidential?

Anything discussed or gathered in our nonprofit credit counseling a session is confidential. All of your records are kept in a secure location. Your financial information will not be shared with anyone unless we have your written permission

Will InCharge report financial information to the IRS or credit reporting agencies?

InCharge does not report your financial information to the IRS or any of the credit reporting agencies.