Debt Management and Credit Counseling
A Garden State Consumer Credit CounselingSM organization
A Non-Profit Organization
Credit Counseling


YOUR DEBT MANAGEMENT PLAN

Welcome!
About Us
How does the program work?
The Keys to Success
Making Payments
Ongoing Counseling and Financial Information


Welcome!

Thank you for choosing Novadebt's Debt Management Plan to assist you with your finances. Congratulations on taking such an important step toward becoming debt free!

Your Debt Management Plan is designed to help you get back on the road to financial stability. It allows you to make one monthly payment for all of the accounts included on your plan. Many creditors will offer concessions, such as reduced interest, waived interest and lower monthly payments, to assist you in the process.

Our staff of trained professionals will assist you in resolving any problems that you may encounter and will answer any questions that you may have.

We look forward to working with you and we are confident that we can assist you in achieving your financial goals

About Us

Novadebt is a non-profit financial management, social service agency that was founded in Freehold, New Jersey and has provided services to consumers since 1991.

It is the primary focus of Novadebt to provide financial education to the public including free housing and credit counseling services to families and individuals in need.

Novadebt is licensed and bonded by the NJ Department of Banking and licensed in all other states that require it.

Novadebt is also recognized by the United States Government as a charitable organization under 501 (C) (3) of the IRS code. Novadebt is a member in good standing of the Better Business Bureau and the National Foundation for Credit Counseling (NFCC).

Our success is measured by the caring, complete services provided to every consumer. Our knowledgeable counselors are certified through the AFCPE. We are here to make your time on the Debt Management Plan run as smoothly as possible and we look forward to helping you get back on track with your finances.

How Does the Program Work?

When you enroll in the Debt Management Plan, our Client Care Specialists contact your creditors to verify your account balances and estimated payment amounts. Creditors require that we send an electronic or written proposal. These proposals advise your creditors that we will be working on your behalf to help pay off your debt.

What is a proposal?

A proposal is sent to each of your creditors asking that they accept your account onto a Debt Management Plan. It advises your creditor that you have retained our services to assist you in managing your debt and we have performed a needs analysis and budget for you and have determined that the monthly payment being proposed is affordable based on your financial situation. It also advises your creditor that we disburse your funds in a timely manner based on when we receive your payment.

When are proposals sent?

Creditors usually expect payments within 30 days of receiving the proposal. Therefore, we generally send your proposals to your creditors just prior to your first payment date.

What happens after my proposals have been accepted?

It is very important that you make payments every 30 days on your account. Once a creditor receives and accepts proposals, many will require 3-4 consecutive payments before they will update your accounts with the proper program benefits. Creditors many continue to call or send letters until this early acceptance stage is completed.

After proposals are accepted and the required consecutive payments are made, your creditor statements will be updated with the proposed creditor concessions. If it is a creditor's policy to reduce the interest rate, statements will reflect the new rate. If it is a creditor's policy to reage accounts, the statement should reflect a current status. If it is a creditor's policy to stop fees, your creditor statement should not reflect fees. If your creditor statements do not reflect these changes at this time, please contact the Client Care Center immediately at 1-800-772-4557.

You may receive a letter from your creditor confirming that your proposal was accepted. If you receive a letter, please send a copy to our office so that we can include it in your file. Some creditors may also notify you that your proposal was rejected before they notify our office. If you receive a call and/or letter from your creditor regarding your proposal, please contact the Client Care Center and we will contact your creditor to make necessary adjustments to help you receive program benefits.

What if the proposal is rejected?

If a proposal is rejected, we will research the reason for the rejection. Proposals can be rejected for a number of reasons. The most common are: creditors change their policies, balances are higher when the creditor receives the proposal, recent purchases on your account, insurance billing, the account is not at least 9-months old, etc.

If your proposal was rejected, you will hear from a Client Care Specialist to let you know what is needed to get your account set-up as quickly as possible.

The Keys To Success

Communication

The Client Care Department can assist you with any questions or concerns you may have while you are on the Debt Management Plan, We are readily available to contact any creditor on your behalf and will provide a resolution to your concern each time you call. However, if you have a question or are experiencing a problem, we will not know unless you call. The Client Care Center can be reached at 1-800-772-4557. Keep this number on hand and call us whenever you need us. We are here for you.

If you are ever going to be late or are going to miss a payment, please contact our office. Your success on the Debt Management Plan is a result of your payment history. We would like to help you through your financial troubles without effecting your credit counseling status with your creditors. We have Certified Counselors that will work through your situation while our Client Care Specialists work with your accounts to help maintain program benefits. If you are experiencing a hardship while on the Debt Management Plan or anticipate one, it is extremely important that you contact us immediately and speak with our Client Guidance Department.

Timely Payments

Creditors expect payments to be made once every 30 days. This ensures that the creditor will receive one payment in every billing cycle. You can make certain that this happens by sending your payments at the same time every month.

Our office offers a Direct Debit Program, where your monthly payment will be withdrawn from your checking account once a month, o n your due date. Direct Debit is the best way to ensure that your creditors are paid once every 30 days. Please call our Client Care Center to inquire about our Direct Debit Program.

Payments should be made in the same form every month. Switching payment methods will cause your payment to be sent to creditors at different times of the month. This means that you may miss a billing cycle or may have two payments post in one billing cycle. Making timely payments is the most important thing that you can do as a client.

You are also able to make your payment by phone by calling 1-800-772-4557 or on-line by clicking here.

Review Creditor Statements

Your creditor statements are mailed to you monthly from your creditors. Creditors do not supply our office with these statements. It is important that you review your statements to ensure that you are receiving the benefits offered by your creditors. It is also important that your creditors have received the payments we are sending them. It takes approximately three months for your creditors to set your accounts on the Debt Management Plan. While your accounts are being set up, you may continue to receive fees and finance charges. Once your account is set up on the program, you should start to see the benefits outlined in your initial plan provided to you by our office. If you do not see these benefits after you have made three consecutive payments on the program, please notify our Client Care Center.

Payments Made In Your First Month

We encourage you to make any payments due to your creditors prior to your first payment due date with our services and 15 days thereafter. This applies to when you first enroll your accounts onto the Debt Management Plan and when you add any additional debt onto the Debt Management Plan. If you do not make this payment and your creditor does not receive the amount due for a billing cycle, you will receive a fee on the account. Your account will continue to receive fees and you will continue to receive calls until the creditor brings your account current, if that is a concession that is offered by your creditor.

Acquiring Additional Debt

It is important that you do not acquire any additional debt while on the debt management program. This practice will assist you in completing our program and becoming debt free. In addition, your creditors can periodically review your credit report and may drop your account from the program, if you have acquired any additional debt.

Watch Account Balances

Since we do not receive statements from your creditors, we do not know when an account is paid in full. You must contact our office when an account is close to being paid in full, so we can send the correct amount.

Making Payments

It is important that our office receives a payment once every 30 days. This will ensure your creditors are paid in a timely manner. It is also important that your payments are made in the same form every month. Switching payment methods will cause your payment to be sent to creditors at different times of the month. This means that you may miss a billing cycle or may have two payments post in one billing cycle. Because creditors are very particular about these billing cycles, late and early payments can cause problems for your accounts. Making timely payments is the most important thing that you can do as a client.

Personal Checks

We will disburse your funds to your creditor within 8 to 10 days of receipt of your payment when that payment is made in the form of a check.

Direct Debit

Our office offers a Direct Debit program that allows us to withdraw your monthly payment from your checking account, once a month on your due date. Our services will disburse your funds to your creditors within 5 to 8 days of receipt of your payment or by your scheduled disbursement date. Direct Debit is the best way to ensure that your creditors are paid in a timely manner. For further information, please call our Client Care Department at 1-800-772-4557.

Money Orders and Cashiers/Certified Checks

We will disburse your funds to your creditors within 2 to 3 days of receipt of your payment or by your scheduled disbursement date, when that payment is made in the form of a Money Order, Cashiers or Certified Checks. Money Orders, Cashiers or Certified Checks should be used in the event that a payment will be unavoidably late. This may prevent your creditors from receiving a late payment.

Phone and Web Payments

You have the ability to make a payment by phone by calling 1-800-772-4557 and choosing the phone payment prompter.

You also have the ability to make a payment online by clicking this link: On-line Payments. We will disburse your funds within 8-10 days of your scheduled payment date or your scheduled disbursement date.

Ongoing Counseling and Financial Information

Financial Education is the core of our organization and is provided at no cost to any individual in need through counseling, written materials and workshops.

Our Client Guidance Department is available to assist clients who may need additional financial counseling while enrolled on the Debt Management Plan. The assistance they provide helps clients who are involved in making major financial decisions (buying a home, buying a car, refinancing, etc.), clients considering bankruptcy, and clients who need additional help budgeting. All of our counselors are certified through the AFCPE and have a variety of resources available to assist you in your situation.

We also have a variety of material available on several topics to help assist you (Click here to view our education library). We also hold workshops in the community on a variety of topics that may interest you. Please call to inquire.
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Page last updated on 10/24/2014