Boca Raton, FL (PRWEB) April 13, 2010
New lower interest rates are being offered by some of the larger credit card issuers that have been put into effect over the last year. Some of the creditors that did not formerly offer very attractive rates through the Debt Management Program have now dropped their rates. The interest rate concessions that are offered by all participating creditors through the DMP are permanent until accounts are paid off and do not change as long as the Debt Management clients keep up with their monthly payments through their agency. Capital one now offers 7.4% instead of the 15.9% that they offered before, Discover is now offering 6.9% down from 15.9% and Bank of America is the best of all usually granting rates of between 1% and 4%. Chase still offers the 6% that they have offered for many years, Citibank offers 9.9% and HSBC offers 9%. A list of rates offered by many of the major creditors can be found at http://www.debtsynergy.com/calculator9999xx.html
It is important to note that there are no negotiations involved in a legitimate Debt Management Program. Creditors like the banks mentioned above have a predetermined percentage of the balance they require and an interest rate that they offer. For example, Capital One requires 2 % of the balance and offers 7.4% and HSBC requires 2.25% of the balance and offers 9%. With this in mind and assuming a consumer had balances of an even $10,000 on both Capital One and HSBC, Capital One would require $200 or 2% of the balance and drop the rate to 7.4%. HSBC would require 2.25% of the balance or $225 and drop the rate to 9%. The minimum payment requirements and interest rate concessions do not vary between debt management agencies either. In other words it would not matter which agency a consumer chose to handle their Debt Management Program, the minimum payment requirements and interest rate reductions are all the same.
It is also very important to understand the difference between a legitimate Debt Management Program and Debt Settlement. In a Debt Management Program the consumer is paying off the debts in full and if the consumer completes the program and achieves a debt free status their credit rating will be maintained and improved. Debt Settlement is completely different and is never for consumers that need to maintain their credit rating. More info and warnings about Debt Settlement can be found at http://www.debtsynergy.com/html/caution.html
More detailed information on Debt Management can be found at http://www.debtsynergy.com/index.html
A BBB Report an Accelerated Debt Consolidation, Inc. can be found at the following link http://www.seflorida.bbb.org/Business-Report/Accelerated-Debt-Consolidation-Inc-%20%2026001690