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Debt Management

Coastal Credit Solutions offers both debt management and debt settlement. They recommend debt management in all cases that the client can afford it and we heartily agree with that position. Like other debt management agencies, the bulk of the fees is paid by creditors and is not visible to individual clients. The creditors pay what amounts to a commission for Coastal Credit’s assistance in collecting debts that otherwise have a fairly high likelihood of becoming delinquent or unpaid. Clients are charged a $59.00 monthly service fee which is about 20% higher than comparable services though still a fairly minor difference. The fee is rolled into the monthly fee paid to Coastal Credit.

The methodology employed by Coastal Credit Solutions for debt management is essentially the same as other highly ranked providers. They, on behalf of the client, negotiate much lower interest rates and fees from creditors. Clients pay them the total payment due on all unsecured debt and they disburse it to creditors in accordance with agreements made with them. The result is that a far larger portion of the monthly payment goes towards settling the debt than to interest so debts are paid off much faster.

Debt Settlement

Coastal Credit Solutions provides debt management service to customers who can’t afford the monthly payments that would be required to pursue a debt management plan. Initially, clients stop making payments on unsecured debt and instead send the money that would be destined for the creditor directly to Coastal Credit Solutions. They maintain a trust account on the client’s behalf and when the money in that account equals 40% of the smallest outstanding debt, Coastal Credit begins the process of negotiating with creditors to convince them to settle for an amount that is far less than the actual amount of the debt. For this service, Coastal Credit Charges 15% of the total debt, a fee that is very typical in debt settlement. They also require a $39.00 monthly account service fee.