Frequently Asked Questions
What is unsecured debt?
Unsecured debt is when a creditor holds no collateral. For example, an unsecured debt is: Credit Cards, Unsecured Personal Loans, Medical Bills, Student Loans, Taxes, Charged-Off Accounts, and Collection Agencies. No form of collateral such as a home or car was utilized to secure the "loan" for services rendered or goods received. Secured loans such as a Mortgage or car Loans cannot be consolidated.
How does debt management plan (DMP) program differ from declaring bankruptcy?
Credit counseling is a process to help people in debt regain control of their finances. Many people choose credit counseling as an alternative weather you have good credit or bad credit. The debt management plans provide by AllianceDebtCareUSA.com is voluntary. In contrast, when you file for Chapter 13 bankruptcy, it becomes public record. Such a step has serious and long-term drawbacks, which may negatively affect your life for decades. You may also have difficulty obtaining credit in the future.
What is a Debt Management Plan?
A program designed to assist consumers in paying outstanding debt, avoiding bankruptcy and minimizing legal and debt problems.
If I join a Debt Management Plan, how will it affect my credit?
If you are delinquent on your accounts now, we can get your creditors to re-age your accounts and show them current. If you pay your bills on time, but have too much credit, and you are not getting ahead by making minimum payments, by reducing your debt to income ratio, you will improve your credit.
How long will it take to pay off my debts?
Debt repayment varies greatly from client to client. It depends on the total amount of debt that you have and the terms being offered by your specific creditors.
Do I have to put all of my credit cards into this program?
NO. The choice of which debt you include in our program is up to you. In fact, many people choose to keep at least one credit card for travel or emergency purposes. You can always add additional credit cards later.
Is the information I give my counselor confidential?
All information you give is strictly confidential.