GreenPath Debt Management Plan

A female GreenPath counselor wearing a headset and speaking to a client.

GreenPath specializes in helping people eliminate credit card debt.  If you want to eliminate credit card debt, you may find debt relief through GreenPath’s Debt Management Plan.

If appropriate for your situation, GreenPath will contact your creditors to propose mutually agreeable debt repayment terms.  GreenPath's Debt Management Plan may:

•    Stop collection calls 
•    Lower interest rates 
•    Lower monthly payments
•    Waive late fees and over limit fees

A female GreenPath counselor talks to a consumer and enters data at her workstation.People often struggle to eliminate credit card debt.  They make monthly payments, but their balances don't decrease because they incur additional interest charges, late fees and over limit fees. They feel like they're on a debt treadmill, working hard but not making much progress.

A GreenPath Debt Management Plan could enable you to pay off your credit card debt quicker because more of your payment would be applied to your principal balances.  And, by reducing the interest charges each month, you could potentially save lots of money. 

On a Debt Management Plan, you would consolidate debts into one payment to GreenPath.  Each pay day, you automatically deposit money to your GreenPath account using electronic funds transfer.  We use that money to pay your creditors on your behalf.  Most creditors are paid through electronic funds transfer.

Last year, GreenPath repaid about $300 million on behalf of nearly 45,000 people who worked to eliminate credit card debt with a Debt Management Plan.

This isn’t debt settlement.  You would pay off credit card debt balances within five years.  And, if we can lower your interest rates, the total amount you pay to the credit card companies will typically be much less than if you paid on your own. 

Use our credit card debt calculator to compare paying on your own versus paying through a Debt Management Plan.

 

Suze Orman discusses Credit Counseling, Debt Management and Debt Settlement.

GreenPath Frequently Asked Questions Graphic

Which creditors do you work with?
All of the major credit card companies offer debt repayment concessions through GreenPath on a case-by-case basis.  We work with most creditors throughout the U.S., including banks, credit unions, retailers, medical providers, auto finance and collection agencies.  However, creditors typically offer debt repayment concessions only on unsecured debt such as credit cards.

How much does a Debt Management Plan cost?
Debt management plan fees are nominal.  They vary based on your state of residence and debt amount.  GreenPath charges a one-time set up fee that ranges from $0 to $50.  We also charge a monthly fee that ranges from $0 to $75.  Our average monthly fee is about $36.  This is minimal considering the amount our clients typically save in waived late fees, waived over limit fees and reduced credit card interest charges.

Can I still use my credit cards on a Debt Management Plan?
Credit cards on the Debt Management Plan must be closed.  However, creditors will usually allow you to continue using one credit card for emergencies and travel purposes.

Does GreenPath work for the credit card companies?
Absolutely not.  GreenPath is a neutral third-party that works in your best interest.  Many creditors support our work because they believe it is a “win-win” solution that results in positive, long-term outcomes for them and their customers.

Will a Debt Management Plan hurt my credit score?
The Debt Management Plan itself is not reported to credit bureaus and does not factor directly into credit scores.  Your score may initially dip when lines of credit are closed.  However, many people on a Debt Management Plan see their scores increase over time as they make on-time payments each month.

How long will it take to pay off my credit card debt?
The length of a Debt Management Plan varies based on your unique situation.  Clients that eliminate credit card debt usually do so in three to five years.

Am I required to sign a contract if I begin a Debt Management Plan?
You will not be asked to sign a binding contract.  You would sign an agreement that specifies the program details and gives us permission to pay bills on your behalf.  However, the agreement is not a binding contract and you can stop the program at any time.

Can I contact someone at GreenPath if I have questions or concerns about my Debt Management Plan?
Yes, absolutely.  We will periodically contact you to see how you’re doing.  But you may contact your personal counselor or account maintenance coordinator at any time for any reason.

What is the difference between a Debt Management Plan and a Debt Repayment Plan?
A Debt Management Plan is a type of debt repayment plan.

Julie, Group ManagerMeet Julie, group manager responsible for managing GreenPath offices in central and western Michigan.  She is one of GreenPath's longest tenured employees, joining the company as a counselor in 1983.  Julie loves seeing the initial reaction of consumers after their initial counseling session.  "The experience is so uplifting for them.  It's a joy to watch them breathe a sigh of relief and smile knowing that there is light at the end of the tunnel."