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Managing Debt with Confidence: Understanding Debt Management Plans with GreenPath Financial Wellness

Published: May 10, 2024

Managing Debt with Confidence: Understanding Debt Management Plans with GreenPath Financial Wellness

 

Life doesn’t always go as planned, and sometimes debt can become overwhelming. At United States Senate Federal Credit Union, we recognize this challenge and are dedicated to helping our members achieve financial wellness.

Through our partnership with the national non-profit GreenPath Financial Wellness, our members have access to powerful tools and resources designed to help pay off debt, reduce stress, and regain control of their financial futures.

Why GreenPath?

For over 60 years, GreenPath has served as a guiding light through financial crises like overwhelming debt, foreclosure, bankruptcy, and credit challenges. Today, they continue to strengthen financial wellness by offering counseling and tailored solutions at every step of the financial journey.

What is a Debt Management Plan?

A Debt Management Plan (DMP) is a structured strategy to make debt manageable while developing sound financial literacy. By consolidating your payments into one manageable monthly payment, a DMP can help alleviate the stress of managing multiple credit card and loan payments.

Key Benefits of a Debt Management Plan:

  • Consolidated Payments: Streamline your debt into one manageable monthly payment.
  • Lower Interest Rates & Fees: Work with your creditors to lower interest rates and eliminate late fees.
  • Faster Debt Repayment: Pay down your debts more efficiently and save on interest.
  • Reduce Stress: Minimize creditor calls and focus on your path to financial wellness.

How Do Debt Management Plans Work?

  1. Assessment: A GreenPath financial counselor will conduct a free, confidential debt counseling session to assess your current financial situation.
  2. Budgeting & Planning: Your counselor will help identify ways to reduce expenses, explore feasible options, and develop a customized budget.
  3. Action Plan: Together, you will create a debt management action plan that aligns with your financial goals.
  4. Consolidated Payments: Deposits are made directly to GreenPath, and they will disburse payments to your creditors on your behalf.
  5. Creditors Cooperation: GreenPath works with your creditors to bring your accounts current, lower interest rates, and eliminate fees.

What to Expect from a Debt Management Plan

  • Reduced Interest Rates: Your counselor will negotiate with creditors to lower interest rates, allowing more of your payment to reduce the principal balance.
  • Stop Collection Calls: Collection calls and creditor letters typically stop after 2-3 successful months on the program.
  • Close Credit Lines: In general, all open lines of credit are closed while on a DMP to focus on debt reduction.

GREENPATH DEBT PAYOFF CALCULATOR

Use this calculator to see your potential savings. Enter your current balance below to see how much you can potentially save.

Calculate

Will a Debt Management Plan Affect My Credit?

The impact on your credit report may be positive or negative, depending on your specific situation. However, paying bills on time is the most important factor in improving your credit score. As you resolve your financial situation, your credit report will improve over time.

Is a Debt Management Plan Right for You?

A Debt Management Plan may be appropriate if:

  • You’re struggling with credit card debt or other unsecured debt.
  • You’re dealing with high-interest rates and late fees.
  • You want to consolidate your payments into one manageable monthly payment.

Free Credit Counseling from GreenPath

Through our partnership, USSFCU members can access free credit and debt counseling from GreenPath. Their NFCC-certified counselors are kind, caring, and here to help with no pressure and 100% confidentiality.

GreenPath Telephone Counseling Hours:

  • Monday-Thursday: 8 a.m. - 10 p.m. Eastern
  • Friday: 8 a.m. - 8 p.m. Eastern
  • Saturday: 9 a.m. - 6 p.m. Eastern

Call GreenPath today: 877.337.3399

GreenPath offers free credit counseling and debt counseling to help ease financial stress, address financial concerns, and develop a plan for a financially healthy life.

  • Understand your financial situation and goals
  • Explore your debt management options
  • Receive recommendations for getting out of debt
  • Develop a personalized action plan

Take the Next Step Toward Financial Wellness

If you're overwhelmed with debt, consider a Debt Management Plan with GreenPath. Learn more and access the resources available to USSFCU members at greenpath.com/ussfcu.

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Members' Voice Testimonials

This credit union is the best, I love the customer service and you can't beat the interest rates. I'm happy to be a member of this great credit union.

- James · Locust Grove, GA

The branch manager introduced herself and was extremely helpful. She stated that if there is anything we ever need to please let her know. Very positive experience!

- Larry · Cumberland, MD

Greta was absolutely amazing - as always. She makes me and my parents feel valued and supported. We are forever grateful. [The Credit Union] has been hugely supportive over many years. And we feel known and cared for.

- Eliza · Washington, DC

Long as I have been with the credit union, I haven't had any problems. I also like the protection on my account.

- Charles · Upper Marlboro, MD

My overall experience at the credit union was exceptional. The staff was hospitable offering water, my service was timely and professional and the office was well lit and clean.

- Denise · Washington, DC

As a member for more than 40 years, i have always had great service from the USSFCU and know that they stand behind their great reputation.

- David · Silver Spring, MD

A top rate Credit Union, [I'm] privileged to be part of! Thank you for all you do for our family! USSFCU Credit Union was able to resolve our financial situation - vehicle, personal loans, customer service/recommendations, within 6 months. We belonged to another credit union for over 20 years, with results not even close to comparison. We switched ...

- Manuel · Bowie, MD

Your people and products are amazing. The recent [online banking] overhaul is phenomenal. [I've] been electronic banking since Tele action phone banking - paying bills with my push button landline decades ago. USSFCU is light years ahead of everyone else in terms of ease of use and client experience!

- Misty · Brookings, OR

I have been a member for more than 30 years. I no longer reside in the DC area but continue to bank with USSFCU because of the ease and the customer service.

- Tamra · Denver, CO

I have been a member for over 50 years, and I have always gotten good service with loans, when I had to have service at a branch, and when I needed to have money sent to me from my savings account. The personnel have always been friendly and treated me with respect.

- John · Fort Washington, MD

I especially appreciate being able to quickly speak with someone (not a robot) and that person has always been knowledgeable and helpful.

- Bernard · Richmond, VA

Excellent customer service streamlined and transparent process. The representatives are efficient, knowledgeable, and understanding of the type of loans offered by Credit Union.

- Erwin · Ellicott City, MD

The USSFCU behaves as a credit union ought to behave. The staff works with and for the members, not for a corporate board. Interest rates for a car loan, a home improvement loan, and a mortgage are low and terms are transparent.

- Ruth · Takoma Park, MD

Staff are courteous and friendly to work with. Very knowledgeable about services and products offered or available. Excellent follow-up with customers.

- Jacquelyn · Sanford, FL

I have appreciated USSFCU services for many years since I left my work on Capitol Hill. I have appreciated the occasional webinars on purchasing a home or retirement planning.

- Jamie · Washington, DC

I have been a member since 2006, and have always appreciated the customer service response to any concern or query. In addition, as I have traveled extensively, USSFCU has provided support and access.

- Kathleen · Ukiah, CA

I've had a credit union account for decades, even though I no longer work on Capitol Hill. I now have two accounts. I've been able to do all of our banking remotely, by app or by phone.

- Richard · Washington, DC

I have been a USSFCU member for almost 20 years. There is nowhere else I want my money to be. I always receive excellent service.

- Nicole · Alexandria, VA

I deeply appreciate the stellar service, the proficiency, the professionalism, and the kindness. I am truly honored and grateful to bank with a financial institution that treats customers like family.

- Angela · Alexandria, VA

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