It can happen at anytime and it can happen to any of us: A job loss. A medical crisis. A natural disaster. Life in general. Any number of unexpected events could potentially lead to mounting debt-and even the most prepared individual is not immune. A Debt Management Program can help. In many cases, using this program will save the consumer money, time, frustration, and severe damage to their credit scores. And most of the time, it’s a healthier alternative to bankruptcy or debt settlement.
How a Debt Management Program Works
A DMP is designed to give you a structured plan that helps you pay back your debts in full but at improved terms. It all starts during a session with your counselor where you pass along some important information and your counselor helps make arrangements.
When you enroll in our Debt Management Program, we will begin to serve as a mediator between you and your creditors. When we explain your situation to them, they typically offer benefits to you that they have not offered to you in the past. For example, they typically offer lower interest rates and waive late and over-limit fees.
You will have a structured payment plan that allows for you to repay your debt in full (unlike with bankruptcy). Also, as your mediator, we make the payments to the creditor on your behalf. This means that you will send your monthly payments to us and we will then send these to the appropriate parties. As you can see, there are quite a few benefits that come with this service.
Here are the benefits that a Debt Management Program offers (note: these can vary, depending on your individual situation):
- Lower interest rates
- Shorter payoff time
- You save money over the course of your repayment
- You make one payment each month (directly to us)
- Late and over-limit fees are waived
- Debt collectors stop calling within 90 of your enrollment
The first step is to sign up for a free credit counseling session. Your counselor will review your financial situation and can determine if you are a good candidate for our Debt Management Program. Sign up today or call 800.750.2227 to get started.