Hours of Operation

Monday

8am - 9pm

Tuesday

8am - 9pm

Wednesday

8am - 9pm

Thursday

8am - 9pm

Friday

8am - 8pm

Saturday

Closed

Sunday

Closed

1.800.460.8641

Home » Client Services Center »

What You Need To Know

Find answers to GFM's Debt Management Program (DMP) & Credit Counseling questions.

GFM has compiled a list of the most frequently asked questions regarding credit counseling, debt management, and everything related. Read on for the questions and answers from our financial experts.

Debt Management And Credit Counseling Frequently Asked Questions:

What is Credit Counseling?
Credit counseling has been around for over forty years. Simply put, it is your opportunity to have an in-depth discussion with a accredited credit counselor regarding your unique financial situation. It is your chance to ask all of your questions in order to obtain a clear understanding of how to get from where you are now - to where you want to be in your financial future. A typical session will cover the following:

Identifying your specific financial concerns and questions.
Reviewing any outstanding debt and the options available to you to accelerate the repayment of those balances.
Developing a working budget and discussing the best ways to maximize your resources to live within your means.
Creating a plan that protects all positive aspects of your current financial situation while actively eliminating the negative ones.

Ultimately, the goal of a credit counseling session is to provide you with the knowledge of exactly what you need to do to create the financial future you desire.

What is the cost of GFM's counseling and budget consultation?
At GFM, our counseling session and budget consultation is free. Our counselors will provide you with a free analysis to help assess your financial situation and determine your best options.

What kinds of debt can be put in a debt management program?
The GFM Debt Management Program is designed to help you with unsecured debts such as credit cards, department store cards, medical bills, signature loans, and many collection accounts. We also have resources to assist you with some secured debt, including home mortgages and student loans; however, it must be resolved separately from your DMP - which is exclusively for unsecured debt.

What are the benefits of a debt management program?
The GFM Debt Management Program is focused on assisting you in regaining control of your finances, creating a household budget, and consolidating your debt into one monthly payment. We work with creditors to arrange for benefits that can include significantly lower interest rates, stopping late and over-the-limit fees, and re-aging delinquent accounts to reflect a current status.

Can anyone participate in a debt management plan?
Yes, but you must have sufficient funds to be able to consistently make the monthly payment while still being able to meet your primary obligations such as rent, mortgage, utilities, food, transportation, and medical expenses.

How will my creditors know I have joined GFM's DMP?
GFM will notify your listed creditors that you have joined the GFM Debt Management Program upon receipt of your first payment. This notification, called a "Proposal," includes the account number and open balance you provided at the time of set up, as well as the GFM payment indicated on your repayment schedule.

In most cases, proposals are accepted. When no changes are necessary, creditors will not formally respond to us. However, on occasion, a creditor may decline a proposal based on an invalid account number, an incorrect open balance, or creditor information. If this occurs, you will be notified to contact us regarding any requested changes to your account, including a possible payment increase.

During the initial phase of your debt management and credit counseling program, it is not unusual to continue receiving calls from creditors. If you are receiving collection calls, the collection agent may not be aware of a proposal from our program until the benefits are granted. If the creditor calls to inform you that they have not received a proposal, please advise the creditor to call our Client Services Center at 1.800.460.8641.

When should I expect to see benefits on my creditor statements?
Creditor benefits are based on consistent and sufficient payments throughout the duration of the program. However, after receipt of three consecutive sufficient payments, most creditors recognize your commitment to the program and typically offer benefits which include:

Acceptance of the proposed payment amount;
A reduced interest rate;
Elimination of late fees and/or over the limit fees;
And, bringing a past due account to a current status.

If you believe, after reviewing your fourth creditor statement, that you are not receiving creditor benefits, you can contact our Client Services Center to verify the benefits offered by each of your creditors. To assist you, please have your statement available.

Will creditors continue their finance charges?
Some creditors will stop or reduce their finance charges and/or other fees for clients on a debt management program. GFM will work with your creditors to get your fees reduced or stopped however, how much the creditors are willing to reduce your interest or fees is up to each individual creditor.

How long will it take to complete the program?
A debt management program is designed to be complete in approximately 3-5 years, based on the minimum required program payments. However, the length of the program will ultimately be determined by the total amount of your debt, your specific creditors, and whether you are able to send extra funds as you become more financially stable.

Can I still use my credit cards once I am enrolled in the GFM DMP?
No. In most cases all accounts entered in the debt management program will be closed. In order to get out of debt and regain financial stability, you must stop incurring new debt. However, if you have a Bank of America card and account, there are certain cases in which a card may be kept for emergency use. Please contact GFM Client Services Center at 1.800.460.8641 for more detailed information in these cases.

Do I need to cancel credit card insurance?
Yes. Most creditors will not accept a debt management proposal without first having the client cancel credit card insurance.

Do I need to continue sending payments to my creditors after I have signed up with GFM?
Yes, you will need to continue making payments until each creditor posts the first payment through the program. In addition, until your creditor has accepted your new debt management program (DMP) payment in writing, either by a letter or reflecting that amount as your minimum due on your statement, you may need to pay the difference in order to eliminate the possibility of the creditor noting your account as 30 days late. This will not mean that you will need to pay more than your normal minimum due, only that you may need to maintain the current payment until they have accepted the new, lower DMP payment.

For example, let's assume you have just enrolled in our DMP program and your typical minimum due for Creditor A is $100; but on the DMP program, it will only be $80. Until Creditor A has notified you that they will accept $80 as your full monthly payment, you may need to have GFM make your $80 payment through the program and you make an additional payment of $20, to cover the full $100 that Creditor A expects to receive that month.

This eliminates ANY chance that Creditor A could reflect you as past due because of a partial payment during the time period they are processing your paperwork. While most major creditors process DMP program requests in a very timely fashion, and typically reflect your new DMP payment within 30 days of enrolling, some may wait to see if you make 2 and even 3 consistent payments through the program before offering you the full benefits.

If you cannot afford to make the additional payments, and by joining the program you will incur a 30 day late charge, this may prohibit you from joining the program. Stop and consider this - if your financial situation is that tight now, what is not joining the program going to cost you in the future? An out-of-control debt-to-income ratio will hurt your credit score tremendously - you could be setting yourself up for far more serious delinquencies in the future if you do not get your debt under control now.

A bright note is that many (but not all) creditors provide for account re-aging through a DMP after three consecutive payments. So that 30-day late charge caused by joining the program would be removed after your third consecutive payment.

How long does my payment through GFM take to post on my creditor account?
Typically, a creditor will post a payment 13-21 days from your debit date.

Can I change my debit payment date?
Creditors expect to receive a payment every 30 days. Changing your debit date can adversely affect your payment cycle and any benefits granted by creditors. You should contact us immediately upon realizing that you may have difficulties in making a program payment.

Will I receive a monthly statement?
Since we do not receive copies of your creditor statements, you should confirm that each of your creditors continues to provide monthly statements. As part of the debt management credit counseling program, GFM will also provide a monthly statement, showing the disbursement of payments to your creditors. Each month, you should compare your creditor and GFM statements to ensure that your payments have posted accurately, promptly reporting any discrepancies to us.

What should I do if I am able to increase my monthly payment or payoff a creditor balance?
You are encouraged to increase your payments whenever possible. Your payment can be increased for one month or permanently if you choose. When you wish to pay the outstanding balance for one or more creditors, simply contact GFM Client Services Center at 1.800.460.8641. We will request a payoff balance from your creditor(s) and contact you to make immediate payment arrangements. It is to your advantage to make all creditor payments, including the final one, through the GFM Debt Management Program. Not doing so can result in loss of key benefits from some creditors.

Why should I include all of my credit card accounts on the program? Would it be okay if I just held on to one of them?
Remember, GFM's goal is to help you pay down your debt in the quickest and most efficient way possible. In order for us to do that, you must include all of your unsecured accounts on the program. This is a requirement of your creditors, who may monitor the activity on your credit report while you are on the program. If you use any credit cards or department store cards, they can disqualify you from the program, causing you to lose the benefits they have provided. However, if you have a Bank of America card and account, there are certain cases in which a card may be kept for emergency use. Please contact GFM Client Services Center at 1.800.460.8641 for more detailed information in these cases.

How does enrolling in the GFM DMP affect my credit profile?
This is a common debt management and credit counseling question. Basically, the answer is that it is completely neutral. It does not, in and of itself, affect your credit positively or negatively.

However, most people find that the accelerated debt reduction that takes place when they stick with their debt management program (DMP) improves their debt-to-income ratio. Since this is a key factor in how the credit bureaus determine an individual's credit score, it will often result in improving your credit profile over time.

GFM does not report your participation in a debt management program directly to the credit bureaus. However, each creditor's policy on reporting varies. Some creditors will report that you are participating in a DMP, and some will show that you have elected to close your account. The most critical factors in protecting your credit when participating in a debt management program will be making consistent, timely payments and carefully managing your first 90 days on the program. We have carefully outlined, in Your GFM journey, all the precautions you will want to take to make your transition into your DMP go as smoothly as possible.

How can I reach you once I am enrolled in the GFM DMP?
You can access and make changes to your account by returning to this web site and logging in to your online account using your Client ID # as your user name and the last 4 digits of your social security number as the password, or by calling our GFM Client Services Center at 1.800.460.8641.

Why is it important that I pay off my debt management program through GFM?
It is important to make your final payment to your creditors through GFM. It does not matter whether you complete the program through your regular monthly payments or you receive a lump sum of money that you use to pay off your remaining balance. By paying through GFM, you automatically receive a completion letter. This completion letter will then be sent to the 3 credit reporting bureaus, and any credit counseling notation your creditors may have placed on your credit profile will be removed.

Can I put my business credit card debt on the GFM DMP?
The most critical factor is whether the business credit was obtained with your social security number or the business's FEIN number. If the credit card debt was attached to you personally through your social security number, then the answer in most cases is "yes." You can enter it in your GFM DMP. However, if the credit is attached to a business FEIN number, then it will usually not be able to be included. If you are unclear on which category the debt falls into, your GFM counselor can assist you.

I have negative information on my credit report - Can you remove it?
No, however you may be able to yourself if the reported information is inaccurate. The purpose of a credit report is to present an accurate picture of your credit history to anyone with a permissible purpose to view your report. If there is negative information on your report, but it is true, it generally can not be removed. Of course, if the data is false, then you need to file a dispute to have it removed. Stay clear of any outfit that claims they can "fix" your credit report. Only time and a good pay history can do that.

My creditor said my account was charged off. Does this mean I no longer have to pay the debt?
When an account is charged off, it is considered to be a debt that is no longer collectable. All creditors have different policies regarding the timeframe within which they charge off an account, but it is generally between 90-180 days after you become delinquent. Nonetheless, you are still morally and legally responsible for the debt. As a matter of fact, the creditor often steps up his collection efforts after an account has been charged off. You may begin receiving calls from a professional debt collection agency, and if reported to the credit bureau, your credit report will move into a more negative status.

What is a judgment?
A judgment is a decision issued by the court at the end of a lawsuit. If you are sued and either do not file the appropriate papers or file papers but eventually lose the case, the person initiating the lawsuit may be awarded a judgment against you. Or, if you choose not to appear in court on the appointed court date, the creditor may be awarded a default judgment. Either way, you will be responsible to pay the judgment and your credit report will undoubtedly be negatively affected.

I have built up some equity in my home - should I use it to pay off my creditors?
There are some positive things about a home equity loan. However, you should consider the full picture before committing. For starters, consider the fact that when you take out a home equity loan, you are putting up your most valued possession (your home) as security for a debt that was originally unsecured. You have taken out a loan against your house. You have turned unsecured debt into secured debt. Then, if you miss what was formerly your credit card payment, you have now skipped a mortgage payment, and you could risk losing your home.

Remember, we are here to help - at GFM, our Debt Management and Credit Counseling goal is your financial peace of mind!