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Table of Contents
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 ADMS’ Debt Management Program affect my credit rating?
Can I send in more money once I have a better cash flow?
After I pay off one account, can I just pay less?
Will I still receive harassing phone calls?
Why can’t I just negotiate with creditors on my own?
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 ADMS. As a non-profit organization, ADMS credit
counselors can secure you these benefits not usually available to credit consumers.
Why can’t I just keep paying off my creditors on my own?
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 ADMS. 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 touched the balance! On average,
ADMS clients pay off their debts in 3 to 5 years, depending on individual circumstances.
How much will it cost me to be on the Debt Management Program?
The consultation is FREE to everyone. Besides the intial application fee there will be a
small monthly service charge to cover the costs of handling you acct. ADMS debt
management and counseling program depends on these small contributions
to meet our operating costs. The majority of clients find that their increased cash flow
from lower monthly payments, interest rate reductions and stopped late charges more than
covers the small monthly service fee.
How will joining ADMS’ Debt
Management Program affect my credit rating?
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 debt management program. 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.
If no, then ADMS can only help you. If you make your payments in full and on time to ADMS,
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.
Can I send in more money once I have a better cash flow?
Of course - you can always increase your monthly payment. The more you pay, the faster
your accounts will be paid off. Just let ADMS know you want to increase your payments
beforehand so we can figure out which creditors to pay more money.
Should I pay my bills in the time before I send you my first payment?
That’s your decision. We recommend that you do if you can, because there is a brief
negotiation period, after we receive your first ADMS payment, when we make arrangements
for future payments with your creditors. If you miss due dates for accounts in the
meantime, you are risking penalty fees and negative information being reported to the
credit bureau.
After I pay off one account, can I just pay less?
That’s your decision, but we highly recommend that you pay the same amount and
transfer whatever you used to pay for the other account to a high interest account. That
way, as you pay off each account, you end up paying more to the remaining accounts,
speeding up the process without changing your monthly spending budget.
Will I still receive harassing phone calls?
You might the first several months on the program since it takes time for your
creditor’s collections department to find out you’re with ADMS. If you get a
harassing call, inform the party to call ADMS and speak to your account specialist. If you
get a harassing call from a collections agency that is not part of your creditor’s
company, we will provide you with a cease and desist letter. 3rd party collection agents
must obey this letter, according to the Fair Debt Collection Practices Act. Make sure you
tell your account specialist if you receive any such calls from a collections agent.
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