Got a Question? |
Q. What would my
obligations be to New Day Credit? |
When you enroll in our Debt Management Plan (DMP), you sign a Debt
Management Plan Agreement. This allows us to contact your creditors and make
arrangements on your behalf. You will agree to make your payments on time
and not acquire any more debt. This is consistent with our goal of helping
you regain your financial freedom. |
| Q. How would New Day
Credit communicate my plan to creditors? |
As soon as you complete arrangements with your counselor, we will prepare
and send a proposed budget and debt management proposal to each of your
creditors. This proposal will list your obligations and how much each
creditor may expect to receive each month. Each creditor is requested to
verify the balance that you listed with us.
|
| Q. Do you offer debt consolidation? |
It's built in to the DMP. You make one payment per month to us, which we
then distribute to your creditors. We do not offer consolidation loans; ours
is a payment plan. Consolidation loans usually take longer to pay off and
cost much more in interest than our Debt Management Plan. The DMP makes it
easier for you to pay all of your creditors with one payment, which we then
divide amongst them. We disburse funds daily, so you can be sure your
creditors will receive their payments on time.
|
| Q. When would my deposits be due? |
It's important to make your deposits on time. Automatic deduction from your
checking or savings account is the easiest. We can also accept payments
through Western Union and debit cards with either a Visa or MasterCard logo.
You and your counselor will agree to a specific date by which your deposit
will be due each month. In turn, we will schedule payments to each creditor.
Your creditors will call us to monitor your progress with the program. |
| Q. Will I get a monthly statement? |
Absolutely! New Day Credit mails a detailed statement to you every three
months. These statements show the deposits that you've made to New Day
Credit, the payments made to your creditors, as well as the approximate
balance owed to each creditor. While we make every effort to keep these
balances accurate, it is impossible to do so all the time. If you join the
DMP, most of your creditors will continue to send you a statement. You
should compare your creditor statement with ours and let us know if there is
a significant difference. |
| Q. What would happen if I were to run
into a problem? |
| You and your counselor will agree upon a living expense spending plan. We
know you will not have any extra money, and most clients must make
sacrifices. If you do encounter a difficulty, we have a team of Client
Support Counselors that you should call immediately. Your support counselors
are skilled professionals who will help you in every way possible. |
| Q. Could my creditors still call me? |
Yes they can, but most will not. Sometimes, when a new client first joins
the DMP, creditors may be unsure about the plan and may call you. We tell
all of our clients not to pay a creditor outside the plan nor make a promise
to pay. If a creditor calls you, you must talk to them; however, be
courteous and help us build their confidence by making your deposits to New
Day Credit. We will then disburse funds to them so that they will get their
payments as promised. The vast majority of creditors will cooperate fully
and immediately mark your account as DMP and not call you.
If you get a call from a collection agency that is not part of your
creditor's company, we will advise you to write them to "cease and desist".
Third-party collection agents must obey this letter, according to the Fair
Debt Collection Practices Act, however, such a letter would not prohibit
them from pursuing legal action. |
| Q. How long would it take to pay off my bills? |
| That depends on how much you owe, how much you pay, and other factors. Many
clients get raises, promotions, or better jobs during the life of their DMP
and can increase their payments. As your debt burden decreases, payments to
the remaining creditors will be increased. The most important thing now is
to take the first step and come in for counseling. |
| Q. What would happen if I were to stop depositing or withdraw from
the DMP before my debts were paid in full? |
| Your financial future could be in serious jeopardy. Even if a client thinks
they have enough debts paid and they can handle the remaining creditors on
their own, it could be damaging. Creditors who may have been waiving
interest and late fees will start charging again. In addition, we would be
unable to verify your plan completion to lenders. We always encourage our
clients to call your Support Counselor and discuss the consequences before
making such a decision. Sometimes it's in the client's best interest to
leave the DMP; however, in most cases, it is a mistake to be avoided. |
| Q. Can I send in more money if my cash flow improves? |
| Of course - you can always increase your monthly payment. The more you pay,
the faster your accounts will be paid off. Let us know you want to increase
your payments beforehand and we will take care of the rest. |
| Q. Should I pay my bills that are due before I send you my first
payment? |
| We recommend you do - if you miss due dates for accounts in the meantime,
you risk penalty fees and negative information being reported to the credit
bureau. |
| Q. What about life after New Day Credit? |
| Congratulations! You are now on the road to financial freedom! Completing
the DMP makes you debt-free and in control of your income. You don't have to
have a high income to have a good life. It's not how much money you make,
but how well you make your money work for you. |
