[FreedomDM]

Consumers are required to close all the accounts they are ENROLLING into the debt consolidation program. They can leave a major credit card out of the program and open to use for emergencies. They are not required to enroll all accounts into the program less they are enrolling a BOA or AMEX as stipulated by said creditors. Each creditors guidelines are a bit different.

The interest rates have standard reductions per creditor and their guidelines for consolidation benefits. As a non-profit the rates we achieve for clients are usually a bit better than a for profit agency. Some creditors have an industry standard while others reduce to a lower fixed rate that varies per enrollment. For Example, Capital One will give anyone in our non-profit program a 7.4% fixed interest rate while BOA will vary the rate based on the financial addendum submitted with the proposal that we admin with our clients in a budget counseling session.

We have heard some clients state they were able to work out a deal with the creditors direct and on a few occasions it was better than what we could provide and we advise the client accordingly. Unfortunately though, most creditors will not begin direct negotiations with the account holder until they’re severely past due and/or nearing charge off status.

Any other questions feel free. Happy to help!