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Frequently Asked Questions
What is a debt management plan?
How does a debt management program work?
Your creditors will be notified of your enrollment into a Debt Management Plan, and your accounts will be locked into a lower interest rate while remaining in the program. If you decide to cancel your plan, your reduced interest rates and perks will be lost, and your higher rates will be reestablished. Once all of you accounts are verified, you will only need to make a single payment to CAPC, and we will distribute your payment to your various creditors in a fashion to get your highest interest rate debt paid off first.
What can I expect when I talk to a credit counselor?
A credit counselor will go over your income, debt, and expenses. If you do not have access to your debt information, our counselors, with your permission, can do a “soft pull” on your credit report. This has NO impact on your credit score, rather it
How long is a credit counseling session?
A free debt analysis will only take 5-10 minutes to determine if you qualify for a DMP. For a customized budget and debt advice, you can expect your free credit counseling session to last anywhere from 30-40 minutes.
What is the fee for credit counseling?
How do I sign up for free credit counseling?
Will credit counseling or enrolling in a debt management program affect my credit?
A DMP should not a
What is unsecured vs. secured debt?
Department Store Cards
Secure debt is not included in a DMP such as:
Do I have to enroll all of my debt?
Can I consolidate my debt without a loan?
Yes! Under a debt management plan, all your debt will be consolidated into one low monthly payment without the use of a loan. CAPC is not a loan company. Our credit counselor
How do I enroll in a DMP?
Can I still use my credit cards while enrolled in a DMP?
Do I need to talk to my creditors about my DMP?
How long to pay off my debt in full?
Will I receive a monthly statement?
Each month you will receive an email reminding you to login to your account and check the status of your program.
Is a debt management plan the same as a debt settlement?
A debt management plan and debt settlement program are two completely different forms of debt relief. A debt management plan is a program to pay off your debts in full at a much lower interest rate and expect to be debt free in 3-5 years. A debt settlement is an agreement to settle your debts for less, at the expense of your credit score, and will likely own the IRS. A debt settlement will force your accounts into collections and will grow your debt with added late fees, and over the limit fees. Read more about debt settlement here.
What is a debt settlement?
A debt settlement is debt relief option that carries several hidden costs. A debt settlement is a plan to settle your debt for pennies on the dollar. Withholding payments for 6months up to 4 years, will force your accounts into collections, and a debt settlement officer, will propose a settlement amount to close the account. The settlement offer is always more than what is originally quoted, as your accounts will rake up late and over the limit fees. Read more about debt settlement here.
Would a debt settlement effect my credit?
Debt settlement has serious consequences on your credit score. Negative remarks are placed on your credit report for every month that you do not pay. These negative remarks lower your credit score and will stay on your report for up to 7 years.
What should I do if I am able to increase my monthly payment?
You are welcome to make increased payments, just notify our customer service department, and they can set up your increased payment.