Debt management and settlement, handled by licensed counselors

What a debt management service does

A debt management plan pulls your eligible unsecured debts into one program with one monthly payment. Our licensed counselors then negotiate directly with each creditor for lower interest, waived penalties, and in many cases a reduced payoff balance. You make one payment to the plan; we distribute it to your creditors and track every account until it reads paid.

Debt management addresses unsecured debt: credit cards, personal loans, medical bills, collections, and similar accounts. It is not a tool for secured debts like a mortgage or car loan.

What you can expect

• Lower interest and fees. Creditors that will not budge for a consumer will often agree to reduced rates or waived late fees when a licensed provider is managing the account.
• A single payment. No more juggling due dates. One payment, one statement, one place to see your progress.
• A finish line. Plans are built to complete in 12 to 84 months depending on the balances and what you can afford each month.
• Fees only after results. We charge for negotiation work after it is done, never in advance.

How enrollment works

1. Free consultation (45 to 60 minutes). A certified credit counselor reviews your income, expenses, every debt, and your credit reports. Bring recent pay stubs, bank statements, and your bills, paid and unpaid.
2. A personalized plan. You get a written repayment schedule with the monthly amount, the expected timeline, and budgeting guidance. All eligible unsecured debts go in; creditors usually require that enrolled cards be closed so new balances do not pile up.
3. Negotiation and payments. We notify your creditors, negotiate terms, and start distributing your payments. You can add to a payment at any time to finish faster.
4. Regular reviews. Your counselor checks in as the plan runs. If income or expenses change, the plan changes with you.

Tips for finishing the plan

• Make every payment on time. Payment history is 35% of your FICO score, and consistency is what turns a dip into an improvement.
• Keep the plan realistic. Essential living costs come first; a payment you cannot sustain helps no one.
• Avoid new credit while enrolled unless it is an emergency.
• Tell us about any debt you forgot. It is easier to fold it in than to have it surprise you later.

Impact on your credit score

Enrolling may lower your score at first: enrolled accounts are usually closed, and settling a balance for less than owed is reported. As balances fall and payments stay consistent, utilization improves and the score follows. Clients who complete a plan commonly see meaningful gains, and many pair debt management with our credit repair service so inaccurate items are removed while the debt is being resolved.

Alternatives we will discuss with you

Debt management is not right for everyone. In your consultation we will also cover:

• Do-it-yourself payoff using the avalanche (highest rate first) or snowball (smallest balance first) method.
• Balance-transfer cards with a 0% introductory rate, if your credit qualifies and you can pay it off before the rate expires.
• Consolidation or personal loans with a fixed rate and term, usually two to seven years.
• Credit counseling on its own, for budgeting and habits before any program.

Choose a provider the way you would choose any professional: check the license, the years in business, the reviews, and whether fees are explained in writing before you sign. Credit Services of America is a licensed Texas Debt Management Service Provider (License #DM12-10132, Bond #57BSBGY3230).