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Home » Debt Management Program »
Debt Management Q&A's
What You Need to Know about the GFM Credit Counseling and Debt Management Programs:
- Can I include all my debts?
- Am I able to use my credit cards once enrolled in the GFM Debt Management Program?
- Do I have to put all my credit accounts into the plan?
- Will my credit companies really stop calling me?
- How will this impact my credit?
- Can I work with my creditors on my own?
- Is there a fee for your programs?
- How long does it take to receive concessions on my credit accounts?
- Is there a penalty for withdrawing from the Debt Management Program?
- Should I file bankruptcy instead?
Can I include all my debts?
You may place unsecured debts including credit cards, department store cards, signature loans, medical bills, and collection accounts on the GFM Debt Management Program. Although our programs may not be able to help you with every kind of debt saving money on your unsecured debt payments allows you the freedom to tackle other things. Please contact one of our counselors at
1.866.467.1259
for additional options for dealing with mortgage debt.
Am I able to use my credit cards once enrolled in the GFM Debt Management Program?
No. In order to get out of debt and regain financial stability, you must stop incurring new debt. In addition, with your new lower interest rates your creditors won't want you accruing new debt until the balances have been satisfied.
Do I have to put all my credit accounts into the plan?
You aren't required to put all of your credit cards into the plan however you'll probably want to since your ultimate goal is to pay down your debt! However you may choose to leave an account open for travel or emergencies. Make sure you choose one with a low rate and a manageable credit line. In addition some companies, such as Bank of America or American Express, may have additional restrictions. Feel free to contact a counselor at
1.866.467.1259
to discuss these guidelines.
Will my credit companies really stop calling me?
Yes. These calls may not stop overnight, however they should begin to taper off and cease in your first three months on the program. Additionally, as a GFM client, feel free to refer your creditors to us and we will be happy to handle those calls for you.
How will this impact my credit?
Of the debt solutions available, credit counseling has the least impact on your credit. If you have fallen behind, it can help improve your credit profile since many creditors will re-age your accounts – bringing them to a current status – and showing your future payments as timely. If you are making consistent payments, it can help by reducing your outstanding debt and improving your debt-to-income ratio over time. In some cases, creditors may elect to place a note on your credit profile allowing other lenders to see that you are participating. This note doesn't raise or lower your credit score however may be considered by lenders when deciding whether or not to grant you new credit. You can request to have this notation removed from your credit profile after completing the GFM Debt Management Program.
Can I work with my creditors on my own?
Many creditors offer concessions to assist you with a financial hardship. Unfortunately, many of these programs provide only a temporary solution - 3 to 6 months – before your old terms resume. You may also find some creditors unwilling to lower interest rates and monthly payments or waive fees. The time-tested GFM Debt Management Program provides a consolidated plan that can assist with creditors over a three to five year time span. Creditors are willing to help you when you work through GFM due to our non-profit status and relationships with over 60,000 creditors.
Is there a fee for your programs?
Our credit counseling sessions are always free. If you choose to enroll in the GFM Debt Management Program you may pay a small monthly maintenance fee and/or enrollment fee. Your finance charge savings will more than outweigh these nominal fees.
How long does it take to receive concessions on my credit accounts?
Most creditors provide your program benefits after your third program payment. In some cases, you may see concessions sooner however many creditors prefer to see your dedication to your new payment program before providing all benefits. Keep in mind that creditor concessions may vary from company to company.
Is there a penalty for withdrawing from the Debt Management Program?
Your debt management program is a voluntary agreement between you and your creditors with GFM acting as an intermediary. You can choose to withdraw at any time. However you would forfeit all of the GFM Debt Management Program benefits - dramatically lower interest rates, lower payments and stopping of late fees – that make your program payments manageable. We encourage you to become one of our success stories by beginning your plan with a solid commitment to the lifetime of your program.
Should I file bankruptcy instead?
Bankruptcy could be an option for you. But it's one that must be carefully weighed as the negatives for filing bankruptcy will have a lasting impact on your future credit plans. Bankruptcy remains on your credit for seven to ten years and may impact your ability to obtain a car loan, mortgage or other credit lines in the future. In addition, with the new Bankruptcy Laws, many consumers filing for Chapter 7 Bankruptcy are being forced into Chapter 13 creditor repayment plans that may result in the repayment of the same unsecured creditors you'd pay under the GFM program. If you are considering this option, please seek the guidance of a reputable attorney for more direction. The GFM Debt Management Program provides an alternate way for you to repay your debts without having to file bankruptcy and without the negative credit consequences that result from a bankruptcy filing. Why not Get Started to see if this affordable alternative is for you?
