If you’re currently struggling with credit card debt, you are probably looking for ways to get out of it. A debt management plan is one effective way to get out of debt.
Debt Management Plan 101
A debt management plan or debt management program (DMP) is a service offered by credit counseling agencies. The goal of a DMP is to help you get out of debt quickly, without going through bankruptcy or debt settlement, both of which can hurt your credit score. Consumers complete a free counseling session to determine the best options for debt repayment. Check out this video that further explains what happens in a debt management program.
Qualifying for a Debt Management Plan
To qualify for a debt management plan, candidates must be able to cover all of their monthly expenses. Having done so, they still need money left to put towards debts. Any credit card accounts entered into the plan will be closed, so no further charges can be made.
Debt Management Plan Must Do List
Your job doesn’t end just because you are enrolled in a debt management plan. You need to stay aware of what is happening with your accounts and consumer debt. You have to make sure that the agency fulfills its promises to you. Also, keep monitoring the program for accuracy. This will ensure you are receiving the benefits of the DMP.
Getting help from a credit counseling agency to assist with your debt problems is a great way to find financial relief. However, you need to be proactive during your financial recovery process. In any debt management plan, it is important that you:
- Make regular and timely payments to the agency.
- Contact the agency with any contact information changes.
- Continue to monitor your monthly statements each and every month for accuracy. Notify the agency immediately of any discrepancies.
- If you are unable to make a scheduled payment, contact the agency immediately to discuss options.
- If you find that the agency has neglected to make your payments, contact the agency immediately.
There are several ways to get out of debt. Any method involves hard work and a reevaluation of your budget and spending.
For more information on debt management plans, call ACCC today to speak with a certified counselor on 800-769-3571. Visit ConsumerCredit.com for more helpful resources to help you get out of debt.