American Debt Management Services, Inc.

Why do I need credit counseling or credit counselors?
In limited circumstances you can negotiate payment arrangements with your creditors. More often than not, it is not a feasible option. In order to get the benefits of lowered monthly payments, reduced interest rates, and waived late and over the limit fees, you need to use the benefits that ADMS can secure for you. As a non-profit organization, ADMS has negotiated special benefits with your creditors that can help you become debt free in as little as 3-5 years.

Why can’t I just keep paying off my creditors on my own?
The average American has approximately $10,000 worth of credit card debt, with an average interest rate of 18.5%. If you just paid the minimum payment at that interest rate, it would take you around 32 years to pay that off. During that period of time, you would pay over $14,000 just in interest! That doesn’t even include the original $10,000 that you had charged. By reducing your interest rates, it will allow so much more of your money to go towards your balances every month that you will probably be out of debt in less than half the time that it would take you to pay it off on your own.

How much will it cost me to be on the Debt Management Program and have credit counseling and counselors?
The consultation is FREE to everyone. If you are comfortable with what we set up for you, we do request a one-time voluntary contribution. There is also a small monthly service charge to cover the costs of handling the accounts for you. The monthly service fee is determined by the number of accounts that you will be putting on the Debt Management Program. As a non-for profit organization, American Debt Management depends on these small contributions to meet our operating costs.

How will joining ADMS’ Debt Management affect my credit rating?
Most lenders view it as a positive because it indicates that you've recognized your problem and are trying to resolve it. Fair Issac and Co. Inc., the company that pioneered the use of credit scores, no longer gives consumers demerits if they are going through credit counseling.

Can I send in more money once I have a better cash flow?
Of course. You can always increase your monthly payment. The more you pay, the faster your accounts will be paid off. Just let ADMS know that you want to increase your payment and we will work with you to determine what will be the most cost effective way to do so. Keep in mind that there are absolutely no penalties or fees for paying your accounts of early.

Should I pay my bills in the time before I send you my first payment?
That’s your decision. We recommend that you do so if you can because there is a brief negotiation period after we receive your first ADMS payment. If you miss the due dates to your creditors, you are risking penalties, fees, and negative information being reported to the credit bureau.

Will I still receive harassing phone calls?
You may receive calls for the first few months on the program since it takes time for the creditors collection department to find out you’re with ADMS. If you get a harassing call, simply inform the party to call ADMS and speak to an account specialist. If you get a harassing call from a collection agency that is not part of your creditor’s company, we will provide you with a cease and desist letter. Third party collection agents must obey this letter according to the Fair Debt Collection Practices Act. Make sure you tell your account specialist if you receive any such calls from a collections agent.