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Freedom Debt Management, Inc. (“FDM”) is proud to announce their new “Fresh Start” initiative to create financial literacy awareness amongst the 20 to 30 year old age group. This service will include free budget counseling and continuing education specifically designed for this demographic. Funding for this project was provided by a grant from Citigroup.
Program participants will work with one of FDM’s certified financial counselors to review their spending habits, develop a monthly budget, long term savings plan, and action plan to homeownership. The first phase is designed to help these consumers establish healthy household budgeting skills. If an individual is struggling with their current unsecured debts, the various relief options will be presented and discussed.
FDM is rolling out this program to provide education and budget counseling to our fellow citizens to help protect them from and create awareness of the predatory practices of the ever growing “Debt Settlement Industry”. While this debt relief option may be the correct path for some, most people are not aware of the negative effects this type of program can have on their future creditworthiness. There are many unscrupulous players sprouting up that are charging considerable up-front fees and not disclosing the potential negative effects this route can lead to. Almost all debt settlement agencies are for profit organizations and few provide the education and training that we strive to impart to help create a positive life changing experience for those that come to us for help. In fact, most settlement companies require a minimum of 10K in debt because they typically base their fees on a percentage of the debt and they’re operating with a profit motive.
While the “Fresh Start” program is all about educating and helping people achieve the “American Dream” of homeownership, it also includes a tool to help people with high debt ratios and those that may be victims of “Universal Default”. Universal Default a practice of credit card issuers raising interest rates based on changes in circumstances that may appear on a consumer’s credit report. Many of our clients have reported card issuers raising rates as high as 32% even though they have never missed a payment to that particular creditor. For these people a “Debt Management Plan” will be developed. Once accepted a client closes all but one of their credit cards and the accounts that are enrolled in the program receive interest rate reductions typically back to single digits. With no up-front fees and a monthly service fee as low as $19.00, these interest rate reductions can save our clients a substantial amount of money and remove the burden of their unsecured debt in five years or less. During which time the client is improving their credit-worthiness by reducing their overall debt and establishing a positive payment history. It is easy to see how this helps one achieve the ideal of homeownership through planning, education, and preparation. Call 888-HATEDEBT, that’s 888-428-3332 to speak with a certified financial counselor today!
Anthony Jurasinski
President
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