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Clean Slate Podcast – Episode 10
In episode 10 of the Clean Slate Podcast, Juan talks about which types of debt are eligible for CreditGuard’s debt management program.
About the Speaker:
Juan Valladares is the Vice President of CreditGuard of America, Inc. and has been working in the credit counseling industry since 1997.
Juan began his career at a major answering service center, responsible for the training and supervision of over two hundred employees. Now in charge of managing CreditGuard’s counseling department, Juan’s management, organizational and motivational skills are all vital to the company’s success.
Juan is a devoted father of two and a passionate racquetball player who competes regularly to satisfy his competitive instincts. He has dedicated his professional life to helping people get out – and stay out – of debt.
“Clean Slate” Podcast Episode 10: What Debt is Eligible for a Debt Management Program?
Wayne: Are all types of debt eligible for a debt management program? Are there limitations on what can and cannot be consolidated?
Juan: A debt management plan [or program] is not necessarily what can or cannot be consolidated into the program, because with a debt management plan there’s some confusion. Obviously, there are types of negotiations or predetermined benefits that some creditors will give to people who join a debt management plan, but a debt management plan is not just specific for a certain type of debt, it’s not just going to be credit cards or department stores cards or gas cards, medical bills; a debt management plan is to manage all of your debt, and that can include student loans or mortgages or auto loans or medical bills or credit cards. It’s essentially any type of debt that you have.
So when you contact one of our certified credit counselors, they’re going to see everything: your finances, your spending habits, they’re going to see who you owe, your liquids and your assets, your liabilities—they’re going to look at your overall structure and find the best way for you to get out of debt. Now, with the right debt management plan the biggest benefits come in through the department store cards, the credit cards and stuff like that, and sometimes even medical bills and all different types of unsecured debt. In addition to that we also have great ways for how to pay your mortgage or your auto loans that could effectively save you thousands of dollars in interest.
So a debt management plan is such an effective program, it really, really is, because it doesn’t just help you get out of debt, it saves you thousands of dollars in interest to get you out of debt in a much faster period of time because of the way we help you manage your payments each month, because of the benefits you receive from certain types of creditors, which will roll over to other types. That’s the difference: it’s not just for a certain type of debt; it’s for your overall expenses. So, at the end of the day everything is eligible for our debt management program because it restructures your finances, it’s a new way of managing your finances.
With over 20 years of experience we’ve spoken to hundreds of thousands of people and we’ve helped thousands upon thousands of people restructure their finances and sometimes it’s just little things, like ‘Hey, if you make an extra payment here, you’ll get out of debt this much quicker,’ or ‘Take that money and put it over here and you’ll pay that off much quicker and your savings will equal x amount.’ This is a good program and it’s a good way for you to manage your finances from this point forward. It’s like the little simple things we do for certain people, but that includes everything: credit cards, student loans, mortgages, auto loans, medical bills, car payments, motorcycle loans, whatever it may be we can definitely help you out with your overall finances.There are no limitations as to what can be consolidated into our services.
“There are no limitations as to what can be consolidated into our services.”
Wayne: Now you said something that piqued my interest, you said you have a way of how you pay off your mortgage debt or how you pay auto loans that can be helpful. What do you mean by ‘how’?
Juan: Well, it’s ironic. So you make a payment each month, even with your credit cards, which is actually a really good example, your interest is compounded on a daily basis. So every single day when you wake up you’ve been charged an interest rate on your credit cards if you hold a balance. Credit cards and all other different types of debt require a payment once a month. I remember when I started in this business one of the things I remember thinking is, ‘Ok, maybe I can send in multiple payments to my credit card companies throughout the month. What that meant was that when I used to make a payment to them, say, every week or 2 weeks, my interest was less because my balance was less at the moment, or at least my finance charges were.
So sometimes just getting into a different type of payment plan, or how you make your payments throughout the month can actually save you thousands of dollars in interest. That means that more money is going towards the principle: if you make one extra mortgage payment a year, it takes off four, five or six years off of your mortgage’s life. And those are the simple little things we do when we restructure people’s finances: between their credit cards and between their secured debt like their mortgage or car loans, when we restructure we say things like, ‘Hey, we just found an extra $500 right here. Why don’t you send this extra payment at this time and you’ll see how much money you’re going to save in the long run, and you’ll also see how much faster you’re going to get out of debt.’
So it’s in the way that we make that payment to your mortgages, or in the way we make that payment to your car loans that can eventually take off many, many, many months or in some cases years off of your loan.
Wayne: Ok. Yeah, I do take advantage of that extra mortgage payment a year. What is it, the 26 plan where you pay every two weeks? But now you have thinking maybe I need to write a weekly check.
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