Q: Why can't I just negotiate with creditors on my own?
A: Sometimes it's possible to 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 USA Credit Counseling. We have an established rapport and track record with your creditors. As a non-profit organization, USA Credit Counseling can often secure you benefits that are far better than usually made available directly to credit consumers.

Q: Why can't I just keep paying off my creditors on my own?
A: If you keep paying just the minimum to your creditors at the interest rate you have now, it will take you much longer than if you paid off your debt through USA Credit Counseling. 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. Paying just the minimum payment at a high interest rate, most of your payment goes toward interest and your principal is not reduced significantly with each payment. On average, USA Credit Counseling clients pay off their debts in an average of 3 to 5 years, depending on individual circumstances.

Q: How much will it cost me to be on the Debt Management Program?
A: At USA Credit Counseling we do not charge any advance fees for our online service. We do however request that clients make a small monthly contribution to cover the costs involved in handling the accounts on a monthly basis. USA Credit Counseling depends on these small contributions to meet our operating costs. Our clients find that their increased cash flow from lower monthly payments, interest rate reductions and stopped late charges makes the small cost of the monthly contribution well worth it indeed.

Q: How will joining this debt program affect my credit rating?
A1:If you have a good credit history, then you should be aware that your credit report may state that you are working through USA Credit Counseling. 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.
A2: If you have a less than perfect credit history, then USA Credit Counseling can only help you. If your payments to USA Credit Counseling are made in full and on time, 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 improve your credit report. It proves that you wanted to pay off your debts in full and took the steps necessary to make sure that your did.

Q: Can I send in more money once I have a better cash flow?
A: You can always increase your monthly payment. The more you pay, the faster your accounts will be paid off. Just let USA Credit Counseling know that you want to increase your payments beforehand so we can research and decide which creditors it would be in your best interest to increase payment to.

Q: Should I pay my bills in the time before I send you my first payment?
A: That's your decision, however we recommend that you do if you can. There is a brief negotiation period of approximately 30 days after we receive your first USA Credit Counseling payment. During this time we make arrangements for future payments with creditors. If you miss due dates for accounts during the negotiation period, you are at risk of penalties and negative information reported to the credit bureau.