Your credit score is not directly affected by joining a debt management plan (see 4 credit-scoring myths). While some lenders may treat credit counseling unfavorably, the long-term effects of a debt management plan are beneficial. In fact, the debt management plan is designed to allow you to rebuild and restore your credit history by giving you an opportunity to:
- Bring your accounts to current status without having to pay large past due amounts.
- Rebuild and restore payment history.
- Reduce your overall amount of debt faster.
In 2003 alone, over 50 of our clients on the debt management plan were approved for home loans.