Why can't I just negotiate with creditors on my own?
Why can't I just keep paying off my creditors on my own?
How much will it cost me to be on the Debt Management Program?
How will joining Visual Credit Counseling's Program affect my credit rating?

Q: Why can't I just negotiate with creditors on my own?
A: In some cases, you can negotiate with creditors on your own to arrange payment or have positive information reported to a credit bureau. However, to get the benefits of lowered monthly payments, lower interest rates, stopped late charges, and waived over the limit fees, you need Visual Credit Counseling. As a non-profit organization, our credit counselors can secure you these benefits not usually available to most consumers.

Q: Why can't I just keep paying off my creditors on my own?
A: If you keep paying just the minimum to your creditors at the current interest rate, it will take you much longer than if you paid off your debt through Visual Credit Counseling Counseling. A $10,000 debt usually takes 32 years and $24,500 to pay off, if you are paying the monthly minimum of 2.5% of the balance at an average interest rate of 18.5%. Because we may be able to reduce your interest rates, stop over the limit fees, and so on, it will take a lot less time to pay off your debt through us. Chances are, in the past, all your debt payments have just gone to pay off interest. You probably haven't even reduced the balance! On average, Visual Credit Counseling clients pay off their debts in 3 to 5 years, depending on individual circumstances.

Q: How much will it cost me to be on the Debt Management Program?
A: Due to the fact that Visual Credit Counseling is a non-profit organization, we do not charge any advance fees for our service. We request and accept voluntary contributions. We ask for an initial enrollment contribution that does not exceed 3 percent of the clients debt load. We also request that clients make a monthly contribution to our organization to cover the costs involved in handling the accounts on a monthly basis. As a non-profit organization, we depend on these small contributions to meet our operating costs. These contributions are strictly voluntary and we will assist any client regardless of their ability to pay. Our clients find that their increased cash flow from lower monthly payments, interest rate reductions and stopped late charges more than covers the cost of the monthly contribution.

Q: How will joining Visual Credit Counseling's Program affect my credit rating?
A1: Do you have a good credit history? If yes, then you should be aware that your credit report may state that you are working through a credit counseling agency. We can't guarantee how future creditors will interpret this information, but we believe that it shows you are trying to get help. Your credit report probably states that you've been carrying balances, made late payments in the past 7 years, or even missed payments, so it may not be as perfect a credit history as you think.
A2: If no, then Visual Credit Counseling can only help you. If you make your payments in full and on time, then many of your creditors will "re-age" your account, which means they will show your accounts as current after several payments. In general, if you are paying off debt, that can revitalize your credit report. Showing that you are working through a credit counseling service may show future creditors that you needed help but wanted to pay off your debts in full.

FAQs Continued...

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