Where can I find advice about debt?

Published on February 5, 2021 by Elevations Credit Union in Personal Finance

Many people may wonder when the right time is to seek help with debt. While every situation is different, key signs include making only minimum payments on credit cards or being unsure of the exact amount of total debt; both are strong indicators that more help is needed to achieve financial well-being, in addition to missing payments on credit cards, car loans, rent, or mortgages. Understanding your options and resources can be empowering. At Elevations Credit Union, we offer all our members access to GreenPath Financial Wellness. GreenPath provides Elevations members with access to debt management services, financial education tools, and free, personalized financial counseling. The sooner you seek help, the sooner you can get back on track.

Financial Wellness Tools

GreenPath offers a library of financial education articles, online classes, webinars, and calculators. Their resources cover a variety of topics, including housing, budgeting, car financing, and more. These tools are helpful for members who need assistance with their credit or who simply want to plan for their financial future.

Free Financial Counseling

GreenPath offers free financial counseling and education to help members who are struggling to pay their debts. Their professional and caring counselors will share options, including ways to pay off debt on your own or through a debt management plan. During a counseling session, be prepared to answer questions about your finances, your debts, and your current needs so the counselor can create a personalized plan for your unique situation.

Debt Management Plan

After analyzing your situation, your financial advisor may recommend a debt management plan (DMP). The goal of a DMP is to pay off all your debts, usually within three to five years. This can help you pay off credit card debt faster and save money on interest charges.

A Debt Management Plan (DMP) can: 

• Stop collection calls 
• Reduce interest rates 
• Reduce monthly payments 
• Waive late fees and over-limit charges

Typical steps in a debt management plan:

• Once you have decided to enroll in a debt management plan (DMP), your debt counselor will contact your current creditors on your behalf.
• They will work with their creditors on aspects such as negotiating monthly payments, waiving late fees, or lowering the interest rate on their account.
• Once your advisor has had the opportunity to speak with all of your creditors, they will contact you to discuss the results and the plan they have developed.
• If you agree to the DMP, you may have to pay an initial fee and agree to a monthly payment. Elevations Credit Union members do not have to pay any initial or monthly fees for a DMP through GreenPath.
• If you have a new monthly payment, you can send it electronically each month to your debt counseling service. They will then be responsible for sending the agreed-upon amounts to each of your creditors.
• Your DMP may include conditions requiring you to cancel some or all of the credit cards included in your DMP and agree to stop using other credit cards. You may also be asked not to open any new accounts or use any other credit cards.
• Your creditors can monitor your credit report and cancel your debt management plan (DMP) if they see that you are using other credit cards or opening new accounts, and not complying with the DMP.
• Complete your plan, make your monthly payments, and contact your advisor if you are concerned that you won't be able to make a payment in full.  Failure to pay could result in increased monthly payments and interest rates. Your creditors may also report late payments to credit bureaus.

Is GreenPath affiliated with Elevations Credit Union?

GreenPath offers debt management services, financial education tools, and free, personalized financial counseling. While Elevations is proud to share GreenPath's services with our members, GreenPath is a third-party organization not affiliated with Elevations Credit Union. Because of this separation, GreenPath is a neutral organization that acts on behalf of our members. This means GreenPath can assist with credit counseling and debt management plans that encompass a member's entire financial situation, not just the accounts they have with Elevations Credit Union. Learn more about everything GreenPath offers and contact them today.

Contact GreenPath