Q: How will debt management affect my credit?

A: It really depends on how your credit is at the time of your entering into a debt management program.  If you have poor credit, your credit will improve in the program as consistent payments are made to your creditors.  Also, by paying down your debt you’ll improve your debt-to-income ratio, you’ll be improving your credit worthiness.   For an answer that best fits your personal situation, contact one of our certified credit counselors at 1-800-299-9240.

Q: Is this a loan?

A: No. This is not a loan. Your money payments are disbursed directly to your creditors. Lighthouse Credit Foundation is establishing a new payment plan with your creditors and consolidate your bills into one monthly payment.

Q: Will creditors still contact me?

A: Creditor calls and letters generally stop after the creditors have accepted a debt management proposal for your accounts.  If creditors call you after you enroll in the program, simply direct them to our Client Services department and the representatives there will advise them that you are enrolled in our debt management program and there is no reason to contact you further.

Q: Can I still use my credit cards if I enroll in a Debt Management Program?

A: Since the objective of the program is to eliminate your debt as quickly as possible, your accounts entered into the program will be closed by the creditors.

Q: Why can't I get just do this myself (without your help)?

A:  Credit card companies generally will not offer lower monthly interest rates and the discontinuance of fees directly to consumers.  However, they have empowered the credit counseling and debt management companies to assist in getting you out of debt.

Q: Can I Purchase A Home Or Refinance My Mortgage While in Debt Management?

A: Most creditors prefer that you do not refinance or obtain a mortgage while on a debt management program. This is because of the increased risk of overextending your ability to complete the program successfully. Each situation must be evaluated individually.

Q: Can I get new credit while I am in the program?

A: If you do obtain new credit while in a debt management plan, you run the risk of a creditor removing your account from the debt management program.  If a creditor drops your account, your fees and interest will revert to the rates they were at the time of your enrollment.

Q: Should I continue to make my monthly payments to my creditors?

A: If you have any credit card payments due now, you should pay them to avoid late payments prior to your creditors’ acceptance of our proposals. Our counselors will advise you on the procedures. But, If you are already behind on your bills, then making a payment to your debt management program as quickly as possible will help you get caught up sooner.

Q: How will I know if payments are being made to my creditors on my behalf? 

A: Lighthouse Credit Foundation sends all clients a quarterly statement that details the amounts we have drafted and disbursed to creditors. We urge all our clients to continue monitoring the monthly statements sent by their creditors.  By checking their statements they will stay the most informed and in this way they can alert Lighthouse Credit Foundation to any discrepancies they may find.

Q: How long will it take to get started?

A: Because the initial set-up includes the negotiation of payment terms with your creditors, it can take 30 to 45 days to get your first payment to your creditors. After this initial payment, your creditors will be paid every 30 days.

Q: What if I am behind on my mortgage?

A: Lighthouse Credit Foundation also assists clients with foreclosure prevention.  Check our Solutions page for more details or contact one of our counselors at  1-800-299-9240