Debt Management Getting Harder with New Bank Rules, Says DebtGuru.com

Salt Lake City, Utah — Those who need a debt management plan are becoming worse off, says DebtGuru.com. The firm is seeing fallout from people whose debt is growing as a result of new banking practices combined with higher unemployment. Banks and credit card issuers have responded to the recession and recent legislation by raising their fees, lowering credit limits and canceling credit cards. This is contributing to mounting debt. Even those who seek help can end up worse than they started if they aren’t careful.

"Our clients are drowning in debt as a result of higher bank fees, lower credit limits and other issues brought on by the recession. They’re looking for something to keep them afloat and many turn to debt settlement only to get into an even worse situation. Our debt management program can help people that end up with higher payments and interest rates that can no longer afford the payments."

Credit card companies have already started to increase charges in response to new rules implemented this year and in anticipation of additional rules going into effect next year. With the economy hurting, credit scores have dropped and banks have less to loan. Banks are taking on more risk and in response are already beginning to:

• Raise minimum payments on credit card debt.
• Charge more for balance transfers and cash advances
• Lower credit limits
• Cancel cards
• Raise APRs
• Charge higher late and over limit fees

Debt management companies restructure existing debt with creditors. "Debt Management plans involve restructuring your current debt with existing creditors. Money is not loaned, and creditors do not change — but the terms and conditions under which the existing debt can be repaid changes significantly," said Scott J. Peterson, President of American Credit Foundation.

Here’s how it works: "DebtGuru contacts your unsecured creditors and notifies them that you have enrolled in a DMP program. We arrange terms and benefits which typically include; lowering monthly payments and interest rates, stopping late fees and other punitive charges, and re-aging accounts to bring them current. Then with debt consolidation we create one monthly payment that gets disbursed to your creditors for you each month."

DebtGuru helps consumers:

• Reduce monthly payments by 20-50%
• Reduce or eliminate interest rates
• Reduce or eliminate late fees and over limit fees
• Consolidate bills into one monthly payment
• Stop creditor harassment and collection calls
• Accelerate payments to save thousands in interest

DebtGuru hopes to educate people on their options for managing debt before it becomes too overwhelming.

About DebtGuru.com
DebtGuru.com® is the Internet domain for American Credit Foundation®, an IRS 501 (c)(3) non-profit consumer credit counseling organization.

The staff at American Credit Foundation® has been helping people achieve their financial goals since 1994. The Foundation was incorporated with the objective of meeting a long-standing need for a debt management program designed for people who were frustrated with their debt situation. We provide a simple way to get out of debt quickly, and lower monthly payments without having to qualify for a consolidation loan.

American Credit Foundation® is a Utah based non-profit organization. As a third-party administrator, the Foundation disburses funds, held in our trust account at an FDIC insured institution, to financial institutions nationwide. The Foundation is bonded and insured with a $100,000 Fidelity Bond.

American Credit Foundation® is a registered and certified ISO 9001:2000 Organization. We are independently audited and certified annually to this internationally recognized Quality Management System through BSI Management Systems. Our Credit Counselors are independently certified by the National Institute For Financial Counseling Education, and we are a member of the American Association of Debt Management Organizations (AADMO).American Credit Foundation® is a member of both the UTAH Better Business Bureau as well as the BBBOnLine Reliability Program.

We are devoted to assisting customers resolve their financial difficulties by giving them the necessary guidance and support for successful completion of the debt management program.

Watch a free online video about our debt counseling services or go to www.debtguru.com to learn more.