Debt Management

Debt Management

A debt management program is a highly recommended solution when someone is faced with high balances and interest rates, or experiencing a financial hardship. Family Budget Services (FBSI) has relationships with creditors who may reduce the interest rates, eliminate the late and over limit fees, while combining monthly payments into an affordable amount.

This program will also bring past due accounts current, rebuild and restore the credit rating and accelerate the process of becoming debt free. An additional benefit from a debt management program is that the client's creditors view enrollment in a debt management program as a step in the right direction.

The client can benefit by an improvement of their credit over the time they are enrolled in the debt management program. Their payment history improves by the one monthly payment made to all their creditors and their debt to income ratio improves because the lower interest rate enables the monthly payment to make a large impact on the principal balance. Approximately one third of a credit score is based on credit card levels. The use of a debt management program can improve the credit.

The certified credit counselors of FBSI provides their clients with education and assistance in guiding them to a more sustainable budget, the proper use of credit, and the ability to pay their monthly bills in a timely manner. The goal is to provide the client with all the tools they need to practice managing their finances better and promoting sound financial health.

Benefits of the program:

  • Bring most accounts current
  • Establish improved budgeting habits
  • Reduce monthly payments
  • Reduce credit card interest rates
  • Stop collections calls
  • Stop late and over limit fees
  • Out of debt within 3 to 5 years.