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How does a debt management program typically work?

Shield Credit notifies your creditors that you are in our Debt Management Program and requests to have your interest rate and monthly payments be reduced to an amount you can realistically pay. Shield Credit often knows the key contacts at your creditors on a first name basis and will do all it can to work the best deal for you (considering your income, expenses, debts and who your creditors are). Let's say you have an $8,000 debt with a major credit card at 22% interest. Generally, the credit card company will agree to lower your interest rate and monthly payments if you are on a Debt Management Plan with Shield Credit. When that happens, a greater amount of your payments go toward reducing the principal, not paying insurmountable interest fees. An added bonus of a Debt Management Plan is that you make one payment to Shield Credit, and stop on-going payments to all your different creditors. This way, you can focus on carrying out your Debt Management Plan and reaching your goals, not worrying about each individual bill. You will still receive statements from your creditors so you can stay active in the process, and watch your debt shrink as it's paid off.

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