For those with considerable debt problems, entering into a Debt Management Plan (DMP) is an effective first step to regain control of your life. A DMP allows you to pay down your outstanding debt within 60 months, through one payment to all of your creditors each month. DMP’s serve a dual role of helping you repay your debts while creditors receive the money owed to them. Making timely consistent payments is the most effective way to improve your credit score. Upon completion of Financial Counseling your counselor will advise you of your options and allow you to choose the best fit for you. If you enroll in a DMP, it is important to make your payment every month to continue to receive the benefits from creditor concessions.
Benefits of a DMP:
- Stop harassing phone calls
- Make one payment to your creditors
- Reduce credit card interest
- Late and over-limit charges are typically eliminated
- Most creditors re-age past due accounts after the 3rd consecutive payment
- Avoid bankruptcy