Your Role and Responsibility
Before you fill out your DMP forms, please review the responsibilities critical to your plan’s success:
1. Continue to make payments to your creditors until you begin making payments through Free My Debt.
2. Closely monitor your creditors’ statements. It is your responsibility to monitor monthly statements to verify that your creditors have reduced your interest rates or stopped late fees as agreed, and that Free My Debt payments are properly credited.
1. Continue to make payments to your creditors until you begin making payments through Free My Debt.
2. Closely monitor your creditors’ statements. It is your responsibility to monitor monthly statements to verify that your creditors have reduced your interest rates or stopped late fees as agreed, and that Free My Debt payments are properly credited.
- If your balances increase, contact us immediately.
- If you find any errors in your statements, you must notify us within 60 days. Remember, Free My Debt does not receive copies of your creditor statements after you start your plan.
- 3. Don’t miss or make late DMP Payments to Free My Debt. If you do, you can expect to receive calls from your creditors. Creditors may resume their collection activities and reinstate regular interest rates and fees. They may also report the delinquency to the credit reporting agencies. Free My Debt cannot control or prevent this action by the creditors, which is why we emphasize the importance of making timely payments throughout your program.
- Your account number
- Your total indebtedness
- Your net income
- Your living expenses
- The names of creditors on your plan
- The amount owed to each creditor in your plan
- Your proposed repayment amount for each creditor
- The date the creditor may expect a payment
- The reason for your plan In most cases, all your unsecured debts must be included in the Debt Management Plan. If one of your creditors will not accept the proposed payment, we will ask if you can meet their requirements.
- Name of creditor and account numbers
- Original balance of each account
- Amount of payment disbursed to each creditor
- Total payment made over the life of the plan
- (*) Indicates creditors on which our computer system calculates interest charges (see below) Balances shown on your Free My Debt statement are only estimates. They may vary from the balances on your creditor statements. When you entered our DMP, you gave your counselor the balance due to each creditor. This established the beginning balance in our system. Since some creditors continue to add finance charges while their customers pay through Free My Debt, balances for these creditors may be larger than what is shown on your Free My Debt statement.
4. Stay in Touch. Contact us immediately if any problems arise. If you do not understand something about your creditor’s statements or mailings, simply call or email Free My Debt.
5. Do not make any payments directly to your creditors unless you have discussed this with your financial adviser. Send all payments, including any late or extra payments you might be able to make, directly to CredAbility.
6. Do not apply for additional credit while you are enrolled in your DMP. If you do, it will place your Debt Management Plan in jeopardy.
7. Update personal information. Contact us immediately with any change in your name, address, telephone number or email address.
8. Close your credit card accounts.
Information Concerning the Creditors on Your Debt Management Plan:
Certain debts, such as mortgage/rent payments, property taxes, car payments and utilities are not included in the DMP, but were accounted for in your monthly budget. Only the debts listed on the Creditor Information page will be paid through your DMP payments with Free My Debt.
Free My Debt sends a proposal letter to each of your creditors when you enter the plan and after you have submitted all of the documents requested in the DMP package. This letter advises each creditor that you have sought debt repayment assistance through Free My Debt and requests the creditor’s support. The proposal letter will identify the following for each creditor:
Once your creditors start receiving consistent, regular payments through Free My Debt, they should stop calling you. If they do call after your enrollment, do not refuse to talk to them. If you receive letters concerning legal action or transferring your account from one creditor to another, contact us. We will help verify that your payments are posted correctly.
Monitoring your monthly Free My Debt statement:
Each month you will receive a Free My Debt statement showing your payments and the resulting disbursementsto your creditors.
The bottom section of the statement is a record of your account:
Credit Reporting and Withdrawal from the Plan:
Some creditors may report to the credit reporting agencies that your account is included on a Debt Management Plan. Some creditors wait until they receive three (3) consecutive payments through Free My Credit. Others will consider your account delinquent and continue to report late payments even though you are working with Free My Credit. They will accept the payment and stop calling you, but they may still report negative information to credit bureaus.
Your DMP is a voluntary plan on your part, our part and your creditors part. If you choose to withdraw, please notify Free My Debt in writing. We will send you a reply confirming your withdrawal. Then, we will notify your creditors of your withdrawal from the DMP. But you are responsible for making new payment arrangements.