One of the primary forms of Debt Assistance is a Debt Management Program. If you qualify as a member of our Debt Management Program, Trinity will make arrangements to pay back your creditors in full. Here’s how it works:
Trinity works with your unsecured debt (credit cards, unsecured personal loan, medical and collection accounts) to establish a monthly payment arrangement through a debt management program. A successful DMP requires you to make one regular monthly payment to pay down debts. Common features of a DMP are:
- Debts are combined into one convenient monthly payment
- Interest rates are lowered
- Late and over-limit fees and collections calls are eliminated
- Debts are paid in full between 3-5 years
After joining a DMP, creditors will close your accounts and restrict the accounts to future charges. The most common benefit of a DMP is the consolidation of multiple monthly payments into one monthly payment, which can be dramatically lower than the sum of the individual payments that had previously been paid.
A second feature of a DMP is a reduction in the interest rates charged by creditors. Debtors with a defaulted credit card account will often be paying an interest rate approaching 30%. Upon joining a DMP, credit card issuers often lower the annual percentage rates charged to 5-10 percent. The reduction in interest rates allows you to pay off large amounts of unsecured debts such as credit cards within 3-5 years without having to file bankruptcy or risk damaging future credit history.
A third benefit offered through a DMP is the process of bringing delinquent accounts current. Often called “reaging” an account, it occurs after making a series of on-time payments through the debt management program. Re-aging does not eliminate prior delinquencies; it allows a debtor a fresh start and an opportunity to begin building a positive payment history.
As you face the difficult challenge of paying down excessive debt, you will be making many important decisions. Before you determine which approach is best for you, talk to Trinity first. The Trinity team can assist you during this difficult time. We’re ready to do a complete analysis of your financial situation and formulate a strategy that best suits your needs. Remember, the choice you make today will affect your credit rating now and in the future. If your debt has you down, we should talk. Call (800) 758-3844 or complete our online application. We can help you become debt free for keeps