FAQs...

Consumer Debt Management Northeast

Q: "How do I get started"

A: The first step is to DECIDE that you will not take on any more debt.  Making this decision will require commitment, determination and even a change in spending habits.  Once your decision is made, we will begin the process with helping you reach your goal of becoming Debt Free!

Q: "What is debt consolidation?"

A: Debt consolidation is a process of restructuring your existing unsecured debt with your creditors.  We negotiate with all of your creditors to obtain the lowest monthly obligation needed to satisfy all of your current accounts. Debt consolidation is not a loan, but a simple process to lower your current monthly payments and interest rates.

Q: "How long does it take to get out of debt?"

A: If you just continue to pay the minimum requested payments on your credit cards, it could take up to 20 years to pay off your high interest debt. With our program, most debt is paid off in approximately 4 years, even if your currently behind in your payments.

Q: "What are the benefits of a Debt Management Plan (DMP)?"

A: You will be making one convenient monthly payment to us and in turn we disburse all funds to your creditors. In most cases, this new DMP payment could save you 40% to 50% than your current payment plan.

Q: "How is a Debt Management Plan (DMP) helpful?"

A: By making EFFECTIVE payments through our DMP, your balances will be paid down faster.  By making one convenient monthly payment to us, we disburse all funds to your creditors in a timely manner. We also send you a MONTHLY STATEMENT, indicating when payments were submitted on your accounts, and the amount of the payment on each account.  We will also create a budget with you, this will provide you with an understanding of your expenses and how they effect you.

Q: "What will this do to my credit?"

A: If your 'Credit Rating' is low, after one year on the DMP, with good payment history, you rating will improve.  Creditor participation in our program is a strong indicator that such a program will not harm your credit.  Creditors may report a "CC" next to their accounts, indicating that you are utilizing a debt management service to make your payments.

Q: "Can I obtain new credit?"

A: NO!  If you try to obtain new credit while you are on the DMP, some creditors will drop you from the program.

Q: "Do you share any personal information?"

 Consumer Debt Management Northeast, Inc. (CDMN) does not report your participation in our Debt Management Plan to credit bureaus. We also have a strong commitment to our clients privacy.

Q: "What do I need to do to qualify for your program?"

A: All you need is at least $2,000 in unsecured debt to qualify for a DMP. If you desire to become debt-free, then complete the "Contact Us" form, and a counselor will contact you, for your no-obligation free quote .

Q: "What kinds of debt can be consolidated?"

A: Any kind of UNSECURED DEBT can be consolidated, including: credit card debt, medical bills, personal loans, store credit, and disconnected utility bills .

Q: "What is secured debt?"

A: Secured debt is a loan with a guarantee (collateral). If you are not able, or unwilling, to pay, it can be repossessed. Examples of secured debt include home mortgages and automobile loans. You will not be able to consolidate these without a loan.

Q: "Are you a collection agency?"

A: No, we work for our clients. Once you decide to become DEBT FREE and have completed our application process, we will contact your creditors to negotiate better rates and payments on your behalf.

Q. Do I have to sign a contract?

A: You will be asked to sign a contract if you elect to establish a debt management program. The contract specifies budgeted payments and fees, however, the contract is not legally binding. You can cancel at any time.

Q. Do I have to include all of my credit cards on your program?

A: In order to provide fair treatment of each creditor, all lines of credit must be included in our program.

Q: "Do you provide loans?"

A: No, we do not provide loans. A loan will only get you further into debt. If you are over extended now, the last thing you need is more credit. Whenever possible, we work with your creditors to reduce monthly payments, eliminate interest, late fees and penalties.

Q. Does your program consolidate all my bills into one?

A: Unlike a consolidation loan, all bills remain separate from one another, but are included together under the DMP. You would make ONE payment to us, either weekly, biweekly, or monthly, and we will disburse that money to the individual creditors on your behalf.  We also provide you with a MONTHLY STATEMENT detailing payments made on your behalf.

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