Coastal Debt Guide

Your Guide to become Debt Free ...

Question 1-877-775-5158

Get A FREE No Obligation Consultation Today

First Name
Last Name
Debt Amount


6 Step To Joining A Debt Consolidation Program
Many people find themselves treading water when it comes to credit card debt. Whether you are current or behind on credit cards, personal loans, ...[more]
Christian Debt Relief
When looking for debt relief many people facing financial hardship find they feel more comfortable with debt assistance from a Christian Debt man...[more]
Benefits of Non Profit Debt Consolidation
In the midst of economic turmoil more people than ever are desperately searching for ways to pay their credit card debt. Most often, consumers fe...[more]
When to consider a debt consolidation program
In today’s economy, it is very common for consumer’s to find themselves overwhelmed by credit card debt and in need of debt ...[more]
Tips on how to avoid bankruptcy
Consumers often feel that bankruptcy is the only option they have when struggling with overwhelming debts and s...[more]
How to consolidate credit card debt without hurting your credit
Debt consolidation is a program that pays the creditors in full by consolidating the debts into one monthly pay...[more]

Debt Management

Debt Management is a program offered to Credit Card consumers that enables them to repay their debt in an organized and timely fashion. The main benefits of a Debt Management Program are: Reduced interest rates, possible lower monthly payments, consolidate all the bills into one simple payment, eliminate late and over limit fees, and stop harassing calls (if behind)

How Does Debt Management work?

Debt Management companies work directly with Creditors to offer the benefits listed above: Reduced interest rates, possible lower monthly payments, consolidate all the bills into one simple payment, eliminate late and over limit fees, and stop harassing calls (if behind)

Creditors are willing to work with Debt Management agencies to help the consumers who are struggling with their debt. Debt Management primarily helps consumers with their unsecured debts. Unsecured debts include: Credit cards, medical bills, old utility bills, etc. An unsecured debt = Anything that’s not tied to collateral.

Debt Management agencies are given benefits by the creditors. Once a client enrolls into a Debt Management Program the Debt Management agency sends proposals to each creditor asking them for the benefits that they give to the client. Creditors have, for the most part, predetermined what interest rate they will give to the consumer. The creditors normally want a monthly payment between 1.75%-3% of the consumer’s balance.

Once the creditor verifies the consumer’s balance is accurate that was given to the Debt Management company they “Accept” the proposal and the benefits begin. Every creditor goes thru this process. Once all of the proposals are accepted the consumer makes one payment to the debt management company and the agency distributes that payment to each creditor individually. The consumer will continue to get their monthly statements from each creditor reflecting the payments being made and the new interest rates. Typically, a client on a debt management program will be debt free within 3-5 years.

How much does this program cost:

Debt Management fees will range from company to company and state by state. Most Debt Management companies will have a small enrollment fee and a reasonable monthly service fee. These fees may vary based on your total debt amount that you enroll into the program. Typically the savings of the program significantly outweighs the fees that are being charged. Most Debt Management companies will provide you a free consultation this may also include a monthly budget.

How does this affect my credit?

Creditors may place a foot note on each of your accounts stating that you’re in a Debt Management Program. states that this footnote doesn’t affect your credit score. Once you complete this program that foot note should be removed from your credit report. The creditors do require that you close down any card that you put on the Debt Management Program. Anytime you close a card down it could affect your FICO Score. 30% of your FICO score is based on your Debt to Income Ratio. The great thing about a Debt Management Program is in 5 years you will be debt free from the creditors you put on the program. This should improve your debt to income ratio dramatically.