Credit & Debt Counseling in New York

Debt Management a.k.a. Consumer Credit Counseling

Consumer Credit Counselors

Often confused with debt consolidation, debt management is an option that is offered through Consumer Credit Counselors (CCC). CCC will help to lower the interest rates on most of their client’s accounts. A lower interest rate can reduce the amount of time it takes to get out of debt. With debt management programs, clients do not pay their creditors directly each month, but rather make payments to the CCC’s who then disperse money directly to creditors on their client’s behalf. With debt management plans, you only make one payment a month to your CCC, which is why this choice is often confused with a form of debt consolidation.

Credit and Debt Counseling Plans

Debt management is a great alternative to debt settlement in New York.  While also referred to as Consumer Credit Counseling, Credit and Debt Counseling is very often confused with Debt Consolidation but both are in fact different choices offered by our debt lawyers and affiliates.  The reason for the confusion between the two different debt relief options is that they both offer the result of one monthly payment and lower interest rates than the rates currently being paid by a person struggling in debt.

To clear things up, Debt Consolidation is a loan that is taken out to pay off one or more other debts and therefore there would be a new company that money is owed to.  Debt management plans differ in that there is no loan but rather a negotiation to lower the interest rates that are currently being paid.

Debt management may also be confused for Debt Settlement, which is a debt relief option that also offers one monthly payment.  The main difference among others between debt settlement and debt management is that Debt Settlement lowers the principle balance to be paid back by the client and debt management there is no reduction of the principle balance.  In other words with credit and debt counseling, the full amount owed will be paid back and interest will continue to be paid on top of the principle balance.

The key feature of a credit and debt counseling plan is the interest rates charged are lower and therefore someone in debt would pay back less by the time the balance is eventually paid off by using credit and debt counseling options like debt management in New York.

How Do Plans Like Credit and Debt Counseling or Debt Management Work?

To enroll in a debt management plan you need to show that you are undergoing a significant hardship that is causing your current credit card payments to cause financial hardship.  A review of your hardship, monthly budget, and creditor accounts would determine whether or not you would be accepted into the program.  If accepted you would have the convenience to begin making one monthly payment to our credit counselors instead of monthly payments to each of your creditors for each individual account you may have.   Our counselors would in turn would pay each of your creditors an amount each month in a specified order.  Being that you would have qualified and enrolled, the interest rates paid would be lowered.  Each creditor has different rates through this type of program so it is virtually impossible to tell what your new rates and payments would be through Credit and Debt Counseling without undergoing an evaluation.   To find out more about this or any other debt relief option our debt attorneys at The Law Offices of Kenneth H Dramer PC offer, call us now for a free consultation at 1-888-314-1722

For those seeking a lower monthly payment, Credit and Debt Counseling is not the best option.

Unfortunately the monthly payments in a debt management plan are similar to what the credit cards already charge and in numerous cases even higher.  It’s important to understand that the function of a debt management plan is NOT to lower the monthly payments but is to lower the interest rates.  If the payments were lowered in addition to the interest rates being lowered, then people would be in the same situation of paying forever because there would still be little to no money going towards the principle balance.  The reason the debt management plans work for those that can afford them are because the rates are lowered while the payments stay relatively similar to what they were hence more of what is being paid each month goes towards reducing the balance as opposed to going towards interest.

Some credit card companies and many other types of creditors such as medical bills, pay day loans, cash advances, student loans, casino markers, deficiency balances for foreclosures and repossessed vehicles, etc. do not negotiate with us with this particular option so alternative choices like debt settlement or bankruptcy are sometimes looked at instead.

If you are too far behind on your monthly payments or your monthly payment into the monthly counseling plan will be extremely high to the point where many times it is prohibitively expensive and other choices like debt settlement, which offers lower payments, need to be discussed.

A person caught in the credit card trap is not usually a good candidate for Credit and debt Counseling plans.  Some in the credit card trap is describes as follows:

  1. paying all their disposable income each month towards the minimums on their credit cards
  2. they then do not have enough funds to purchase their necessities in cash
  3. in turn they need to use their cards again to purchase their goods and services
  4. the new monthly credit card billing statement comes in and the minimum payments go back out.  The cycle repeats!

Although Credit and Debt Counseling can work well for certain people in certain situations, we only recommend this debt relief option to those that fit all four of the following circumstances.

  1. not currently using their credit cards
  2. have a steady source of income
  3. have savings to fall back on in case that steady income dries up
  4. no need to use credit in the future as this option will close the accounts that are enrolled.


Click on the options listed below for more information on each:

  1. Paying Minimums
  2. What Happens if You Don’t Pay
  3. Debt Consolidation
      1. Balance Transfers
      2. Borrowing from Friend or Family
      3. Unsecured Loan or Line of Credit
      4. Secured Loan or Line of Credit
      5. Payday Loans, Cash Advances, Tax Refund Loans etc  
  4. Credit and Debt Counseling
  5. Debt Settlement
  6. Bankruptcy

Other Options

Debt Collection Lawsuit Defense

Fair Debt Collections Practices Act Violation Lawsuits

Mortgage Relief & Foreclosure Defense

Tax Relief

Student Loan Relief

At The Law Offices of Kenneth H Dramer PC, before we make any recommendations, our debt lawyers, certified debt relief specialists, and paralegals, are trained to ask the right questions to find out about your specific situation. Based on your current income and your financial hardship, we will determine which course of action will work best for you. We do not only offer one path, as there is no one process that can solve everyone’s needs. We will take our time with you and help evaluate what your best course of action should be. Call now and one of our advisers will be there to get you started on your path to financial freedom. There is no obligation to enroll, so don’t delay.


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*Individual results may vary based on consumer’s earnings, assets, current financial situation, and ability to complete all program terms. Our law firm does not assume or pay any debts, nor provide credit or tax advice on forgiven amounts. Program is not available in all states, and does not obtain immediate repayment arrangements.

*Be  wary of any company that tells you not to pay your bills as certain debt relief options may have a negative impact on your credit report and other consequences.  For example, your debts may continue to accrue late fees and penalties, you also may receive calls from your creditors and/or debt collectors, you could even be sued for non-payment.  If a creditor obtains a judgment against you they have the right to garnish your wages or put a lien on your home.  Make sure you choose company that explains the benefits and consequences of each debt relief option.  Please read and understand all program terms prior to enrollment.

*The information provided on this site is for general information and educational purposes only.  The information presented should not be considered legal advice, and should not be misconstrued as such, and should most definitely not be acted upon without first consulting with an attorney. The information is subject to change without notice. Consult a debt relief lawyer licensed in your jurisdiction for specific advice.

*We provide Debt Relief services and are a debt relief agency, as defined by the U.S. Congress. We proudly assist people filing for bankruptcy relief under the Bankruptcy Code as well as various other services to help avoid bankruptcy.