Question 1

Is a debt management program worth it?

Accepted Answer

A Debt Management Program (DMP) can be a smart solution for those struggling with high-interest credit card debt. It’s especially valuable if you&#8217;re:

Making only minimum payments and not seeing progress
Juggling multiple credit card accounts 
Facing mounting interest that makes it hard to pay off balances

With GreenPath’s DMP, many people see their interest rates reduced which may significantly lower monthly payments and help you pay off your debt faster.

Question 2

Who is eligible for a debt management program?

Accepted Answer

GreenPath’s DMP is designed for people with unsecured debt, such as credit cards, department store cards, medical bills, or personal loans, and the program is tailored to your unique financial situation.To get started, connect with a HUD- and NFCC-certified counselor for a free, no-obligation debt counseling session. Together, you’ll review your debts, income, and expenses to determine the best path forward.

Question 3

What credit card companies or lenders participate in GreenPath’s Debt Management Program?

Accepted Answer

We work with most creditors throughout the US, including banks, credit unions, medical providers, and collection agencies.

Question 4

Are debt management programs different from debt settlement?

Accepted Answer

Yes, they are different. Debt management programs are designed to pay off the entire amount you owe in 3 to 5 years. If we can lower your interest rates, the total amount you pay to your credit card company is typically less than if you paid on your own. Debt settlement typically involves requesting credit card companies to forgive a portion of your debt in exchange for a lump sum payment. Understanding the differencesUnderstanding the differences can help you make an informed choice based on your financial goals.

Question 5

What is the difference between debt management programs and debt consolidation?

Accepted Answer

Debt management involves making arrangements with creditors through a credit counseling agency, offering benefits such as a structured repayment plan which may include reduced interest rates. Unlike debt consolidation, which combines debts into a single loan, debt management focuses on creating a manageable repayment strategy tailored to your financial situation. If you&#8217;re considering consolidation, this articlethis article explains whether it’s a good idea and how it compares to debt management.

Question 6

How much does it cost for a debt management program?

Accepted Answer

Debt Management Program set up fees and monthly fees vary based on your state of residence and debt amount. On average, GreenPath clients are charged a one-time enrollment fee of $35 and a $31 monthly fee. This is minimal considering the amount of money our clients typically save in waived late fees, waived over limit fees, and reduced credit card interest charges.

Question 7

Does GreenPath work for the banks?

Accepted Answer

GreenPath is a neutral third-party that works in your best interest. Many creditors support our work because they believe it results in positive, long-term outcomes.

Question 8

Will a debt management program hurt my credit score?

Accepted Answer

GreenPath does not contact the credit bureaus when you enroll in a debt management program. However, because you will be closing lines of credit during the enrollment process, your score may dip. But over time, most people see their scores increase, because they are making payments in-full and on-time each month.

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