Can anyone here explain how credit works?

Question

My sister signed up for a debt management plan and she received her bill from one of her creditors telling her that she owes them late charges and fees because the payment was made late by the debt management plan company. Will she be sent to the bill collector if she don't pay the late charges or should she just pay the late charges anyway?

Answer 1

she needs to call her consoldation company. They are making the payment late and they shouldnt. They can also call the CC company and have the fees reversed. once your in debt consolidation, all actions on the card go through the consolidation company

Answer 2

If I were your sister, I would call the debt management company and ask them to deal with the late charges... Either to pay them, since they made the payment late, or to talk to the creditor about removing the charges...

I've never used a debt management company, so I'm not sure how they work, but I imagine they must have some sort of policy/procedure.

Answer 3

This is a very common problem with debt management companies. They hold your money, take their cut first, and your bills end up late. Also, some credit cards refuse to negotiate with debt management companies.

Your sister should stay on top of the debt management company to make sure they pay her debts on time.