Frequently Asked Questions

 

Click on any of the listed questions below to review the specific answer. If you are unable to find any specific information you may be interested in, contact Debt Managers and a representative will be more than happy to assits you.

 

1. Is DEBTMANAGERS a bank, trust company, or other type of loan company? Do you make loans?
    
2. What is a Debt Management Program?
    
3. Will my creditors stop telephoning me? Harassing me? Hassling me at work or at home?
    
4. Is your Debt Management Plan a Consolidation Loan?
    
5. What if I change my mind after I start the program? Is that allowed?
    
6. What about garnishee orders or judgments?
    
7. Will a Debt Management Program affect my credit rating?
    
8. Will I get my good credit rating back?
    

 

Is DEBTMANAGERS ® a bank, trust company, or other type of loan company? Do you make loans?

No. We provide a Debt Management Program (sometimes referred to as a DMP) rather than a loan.

 

What is a Debt Management Program?

One of our expert counsellors will confidentially assess your present financial position with you, either in person, on-line, or over the telephone. Your personal credit counsellor will work with you to prepare a budget and arrange to deal with your creditors. Then the company will help you manage your debts on an ongoing basis by collecting one, single manageable payment per month from you (or two, depending on your personal cash flow) and distribute it to your creditors.

 

Will my creditors stop telephoning me? Harassing me? Hassling me at work or at home?

In virtually all cases your creditors will be more than happy to deal with our credit counsellors and file managers, and will generally cease all collections activity as long as you maintain your Debt Management Program.

 

Is your Debt Management Plan a Consolidation Loan?

No, though the results are very similar. With our Debt Management Program, you are responsible for a single monthly payment to cover all of your outstanding debt payments, and the result is a lower payment than you are currently making to you creditors. We will also support you with credit counselling, so that you can get debt-free and stay that way.

 

What if I change my mind after I start the program? Is that allowed?

The Debt Management Program and Credit Counselling is a voluntary program both on your part and on the part of your creditors, however, creditors tend to view your participation in a Debt Management Program in a positive light as it demonstrates a sincere effort to repay your debts. Generally, creditors recognize that our Debt Management Program and Credit Counselling is a positive indication of this effort, and as long as payments are made under the Debt Management Program, will not take any other collections activity.

Also, if you enter into an agreement to start the Debt Management Program your credit rating may be affected, as creditors may notify the Credit Bureau that you have entered into an arrangement, and file an R7 rating on your file. Even if you change your mind, your creditors may not be willing to change your rating back to what it was before you started. It is important that you fully understand that the Debt Management Program is a serious commitment, as backing out of it may make it difficult or even impossible to restore your credit rating to what it was before you started on a Debt Management Program. If you are not sure that the Debt Management Program and Credit Counselling is for you, or that you are genuinely committed to completing the program, it is important that you don't make an agreement that could come back to cause you problems later.

 

What about garnishee orders or judgments?

Contact your credit counsellor for assistance in dealing with the creditor, in many cases a DMP will forestall action on a judgment or garnishee order, and your File Manager may be able to negotiate an arrangement that will satisfy both you and your creditor to eliminate legal actions. If you currently have judgments or a garnishee order, call our 1-800-774-5779 toll free number and talk to one of our counsellors. The counsellor may be able to help immediately.

 

Will a Debt Management Program affect my credit rating?

In some cases, as it depends on where you are at right now. About 50% of people already have this rating and don’t realize it.
Your creditors will rate your accounts with an R7 rating with the Credit Bureau, which indicates that you have entered into a voluntary arrangement to make payments.

 

Will I get my good credit rating back?

Yes. Three years after completing your Debt Management Program, the R7 rating will disappear.