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Is a Debt Management Program for You?
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If you are comfortable with the payment and debt-free date and want to enroll in the debt management program, FFEF will review your personal information, your monthly budget, and your preferred method of payment with you. You will receive a call from your FFEF counselor to discuss the program and answer any questions.
Proposals will be sent to each of your creditors to negotiate lower interest rates and lower monthly payment amounts within 30 days before your first payment due date.
Your monthly payments will be consolidated into one payment that you send to FFEF, and your first payment will be due within 30 days of your enrollment. You should make certain your payment arrives at FFEF at the same time each month so that it is always disbursed on the same day.
FFEF will send your payment to your creditors every month. After the lowest creditor balance is paid off, the money that was going to that account is added to the payment going to the creditor with the next lowest balance. This process, called roll-up, continues until all of your debts are paid.
Besides negotiating lower interest rates and lower monthly payments, FFEF also works to have your accounts re-aged or brought current. This eliminates any future past-due fees. Many creditors will lower the interest rate from what you’ve been paying, but some may not.
You will receive a monthly statement from FFEF showing your esti- mated balance, the payment sent to each creditor, and a reminder of when your next payment is due. You will be able to see the progress you are making each month.
Each month you will either receive and/or have access to a free 4-page newsletter on our web site that will help you learn how to manage your money and stay out of debt in the future. FFEF’s certi- fied credit counselors will be available throughout your program to offer counseling and support. Your success is our success.