Accelerated Debt Management Offers Tips On Exploring Balance Transfers Prior To Entering A Debt Management Program - Many Major Banks Now Offer Better Rates Than Before

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Transferring balances to the more consumer friendly banks before debt management enrollment can result in more favorable terms.

New More Consumer Friendly Debt Management Rates Are Offered By Major Banks

Many consumers in need of a debt management program are unaware of the fact that different creditors offer different interest rates and some are much better than others. Many department store and home improvement center accounts are issued by creditors that do not offer much in the way of interest rate concessions or monthly payment reduction. On the other hand, most of the major, full service credit card issuing banks now offer much better rates and terms than they did in the past. With this in mind, when consumers are exploring options and different agencies for debt management they should first find out what their creditors offer before making a decision on which agency to choose.

Debt management agencies that specialize in handling accounts for consumers with good credit will explore these options and construct a specialized debt management plan that gets their client the best rates on as much of their debt as possible. For example, if a consumer was carrying a high balance on a store account that happens to be one of the creditors that does not offer a very favorable rate in the debt management program and they have significant available credit on another account or accounts, they could transfer some or all of the balance from the account that does not offer as favorable terms to other accounts that do offer favorable terms before enrollment. For some examples of what the major creditors offer visit the PAYOFF CALCULATOR here.

Many consumers have no idea what the creditors offer in the debt management program when they take advantage of offers sent to them in the mail or at the checkout counter in many stores. A typical scenario is when the customer brings their goods to the checkout counter and they are told that if they open a charge account with the store that they will receive 20% off their purchase. This sounds very inviting but it is important to know what you are getting into before signing up. Many of these types of accounts are issued by creditors that only offer a 25% refund of finance charges monthly in the program and their rates are usually high to begin with even for consumers with good credit. When these accounts are enrolled in a debt management program they require a higher monthly fixed payment than accounts offered by most full service banks that issue credit cards. Most of the major credit card issuing banks offer low fixed rates like 6%. 7.4% or 9.9% in the debt management program. These other accounts issued by the not so consumer friendly banks leave the interest rate the same and just credit back 25% of the monthly finance charges. So in effect if a consumer was at 24% the account would really only be dropping to 18%. If the balance of that account was first transferred to an account that offers 7.4% for example the debt management client would be paying down the account much faster.


#1. After the counselor is provided with all of your account information such as names of creditors, balances and interest rates the counselor should be able to provide you with the calculations of savings and payoff times for each individual account and a total for all of them that you are including.

#2. If it turns out that you are in fact carrying significant balances on accounts that do not offer much in the way of better terms through the debt management program the right agency will begin to explore the possibility of transferring some or all of those balances to more favorable accounts that you have before enrollment.

#3. Keep in mind that one “legitimate” agency cannot get you different rates and terms than another. All legitimate agencies must provide creditors with the creditors minimum payment requirement, it does not vary between one agency to another and neither do the rate reductions. All legitimate agencies are provided with weekly updated “Biller Directories” through Mastercard RPPS and these Biller Directories are the same for all agencies.

#4. Based on the information provided in Tip #3 if an agency quotes you rates and terms considerably lower than other agencies consider this a RED FLAG and do more homework on that firm.

#5. Always check the agencies BBB Report before making a decision and click HERE for warnings.

If you follow these steps you can get the most effective repayment terms and get out of debt faster. For more info on specialized debt management visit

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Jim Young
Accelerated Debt Consolidation, Inc.
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