Get Credit Counseling to Help Manage Your Debt from the Union Plus Credit Clinic
A Debt Management Program (DMP) can give you the benefit of lower interest rates on many of your credit accounts.
You will have only one monthly payment to those creditors that choose to participate in the DMP, which will help greatly toward shrinking your debt.
Better yet, a DMP offered by a credit counseling agency is not likely to hurt your credit. The majority of lenders will not report that you are repaying your account through a DMP. If you stick with your counseling program for at least three months, some creditors will even update your credit report and remove late payments that occurred right before you began the program.
When determining your credit score, FICO does not take into account credit counseling notations when calculating your score. However, make sure you work with a reputable counseling agency. If not, you may run the risk of the counseling agency paying creditors late, which will further damage your credit history.
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About the Author
Gerri Detweiler is a longtime consumer educator and the author or co-author of five books, including Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights. Union members receive a 50% discount on the eBook.