 |
|
|
|
|
| 1-800-339-2361 |
|
Client Services Has Changed Our Hours to Better Serve You
Monday - Thursday 9am to 6pm
Friday 9 am to 5 pm |
|
|
|
|
|
|
|
|
|
 |
|
Debt Management
|
|
What is Debt Management?
Debt Management is a program for dealing with debt that is becoming extremely popular. These programs typically are associated with not-for-profit organizations. Although it may sound like debt management programs are loans, they are entirely different. Unlike a loan, your debt is consolidated and your interest rate reduced without the need for a loan. Consumers make one monthly payment to the not-for-profit which usually covers all their monthly credit card bills. The not-for-profit then forwards the payments on to each creditor. The creditors often reduce the minimum monthly payments and interest rates for the client who is working with a not-for-profit organization. Most creditors realize that a consumer who seeks financial education and counseling and is willing to consolidate their payments in a debt management plan is much more likely to repay them.
Debt Management Plans create a "win-win" situation for the consumer. The consumer gets their interest charges reduced, their monthly payments minimized, and has the convenience of paying all their debts in one monthly payment. Also, by making the regular monthly payments, the consumer will be back on the road to restoring their credit rating.
Step By Step Process
- Gather all statements, list all income and expenses
- Call Lighthouse Credit Foundation, Inc. (LCF) at 1-800-466-0166 for initial credit counseling session
- A certified credit counselor will create your budget, review your financial situation and determine what is the best alternative for you
- You will either be referred to a credit counseling program (self management, refinancing and other option consideration and review) or a debt management program (DMP) which includes credit counseling
- If a DMP is the solution, the counselor will propose a plan which provides positive disposable income that extinguishes all unsecured debt within 5 years
- An "Enrollment Packet" is sent to you for your approval and review
- Upon return of the "Packet" LCF sends the budget to the unsecured creditors with a proposed reduced payment and/or interest rate. (If the proposal is accepted by the creditor, normally all over-limit and late fees will be removed and the account will be listed as "Current" after 3 successful payments are received in the program.)
- LCF will draft the sum of all payments plus any contribution from the client's checking account via Automated Clearing House (ACH) on a prearranged date each month (5th, 10th, 15th, 20th, 25th, or 30th)
- Ten days later LCF disburses the individual cleared payments to unsecured creditors through out the United States via Electronic Funds Transfer (EFT 88%) or paper check (12%)
- LCF reallocates payments of paid off accounts to remaining creditors in the program (highest to lowest interest-rated accounts) to accelerate the payoff of their accounts
- Creditors will continue to send monthly statements tracking the receipt of individual payments
- Lighthouse Credit Foundation sends quarterly statements tracking all payments and disbursements made on the clients behalf
- LCF continues credit counseling with the client throughout the program
Benefits of Enrolling with Lighthouse
- Lighthouse processes more than 200,000 payments each month
- Lighthouse works with more than 5,000 creditors
- Lighthouse pays more than 88% of all accounts electronically, directly to the creditors
- Client's interest rates may be significantly reduced
- Client's late and over the limit fees may be waived by their creditors
- Lighthouse has extensive research capabilities
- More than 85% of Lighthouse agents are Certified Credit Counselors
- Lighthouse offers Customer Service from 8:30 am to 10:00 pm EST. Monday through Thursday and 8:30 am to 5:30 pm Friday
- The most important reason...We Care!
We Care About Our Clients!
Click here to Contact Us!
|
 |
|
|
|
|
|
