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Accelerated Debt Management Offers Tips On Choosing The Correct Debt Service - Know The Differences Between Debt Settlement and Debt Management


Do Your Homework Before Deciding On Which Type Of Debt Service To Chose

Boca Raton, FL (PRWEB) October 24, 2012

Accelerated Debt Management advises that it is extremely important to understand the difference between “Debt Settlement” and “Debt Management”. Debt settlement is a process of trying to negotiate with creditors to accept less than the full amount owed on an account. This is NEVER for a consumer that wants to improve or maintain their credit rating. Over the last 9 years many of these debt settlement firms have popped up all over the country and created an enormous problem for consumers facing high balance credit card debt. Much of the problem is the confusion this has created. Many consumers hear the horror stories about debt settlement and then assume that debt management will create the same problems. This prevents consumers from receiving the help they need with high interest credit card debt. For details on the pitfalls of Debt Settlement visit this link at

Debt Management is a process of lowering interest rates through what the major creditors offer for “Approved” debt management agencies. In a Debt Management Program or (DMP) clients pay off their full balances at lower interest rates over a shorter period of time and end up raising their credit scores in the process. There are no “negotiations” involved in a legitimate Debt Management Program. Each of the major creditors have requirements for their DMP's that are all predetermined. For Example, if a consumer was putting a Chase credit card for $10,000 in a legitimate DMP the debt management agency would be required to propose 2% of the balance to Chase as a monthly payment so in this case it would require $200 per month and Chase would reduce the interest rate to 6%. If the same $10,000 balance was owed to Wells Fargo the required minimum payment would be $225 or 2.25% of the balance and the interest rate offered by Wells Fargo would be 7.3%. What is also important to note is that one legitimate debt management agency cannot get different monthly payment requirements or interest reductions than another.

Proposals for DMP's from legitimate debt management agencies are submitted through Mastercard RPPS and the requirements for the clients accounts are the same for all agencies. The legitimate Debt Management agencies across the country receive updated “Biller Directories” each week that contain Biller Identification numbers for proposals and payments to creditors and all agencies receive the same Biller Directories nationally. For more information about how payments are calculated in a legitimate debt management program visit this link at

Tips For Avoiding The Wrong Service

Tip #1.

Be wary of any firm that attempts to get authorization to debit your bank account without first providing you with a written client agreement detailing the services offered.

Tip #2.

Look at the client agreement to see if the firm offers a written service guarantee.

Tip #3.

Be clear as to where your monthly payments are going. Are they being disbursed to creditors or are the first several payments satisfying the firms fees.

Tip #4.

Ask if your accounts will be paid in full over the life of the agreement or is the firm attempting to "settle" the accounts for less than what is owed.

Tip #5.

Check the firms BBB Rating at

What is important to understand is that help is available for consumers faced with high interest credit card debt and they can pay off their accounts in full through a properly administered Debt Management program while maintaining and improving their credit rating. Trying to pay less than the full balances owed will ALWAYS result in damaged credit, possible tax consequences, lawsuits and a myriad of problems. Once a consumer understands the differences between debt settlement and debt management there is still a need for CAUTION in choosing which agency to handle their accounts. For a complete list of warnings concerning debt management visit this link at and visit the Accelerated Debt Management BBB Report at and their BBB Trust Link at

For more information on debt reduction services from Accelerated Debt Management visit their web site at

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