A debt management program (DMP) is a repayment plan designed to help you eliminate high interest rate credit card debt. You enroll voluntarily through a credit counseling agency that helps you find a monthly payment that works for your budget. It’s not a loan – just a better, more efficient way to pay off your credit cards. Think of it like a professionally-assisted repayment plan.
How debt management programs work Shenorock, New York
First, a certified credit counselor reviews your budget, debt, and credit. They check for two things:
Are you eligible for the program?
Do you have any better options for relief?
If a DMP is the best choice for you, the counselor helps you find a monthly payment that fits your budget.
Fees are included in the monthly payment, so you don’t need to worry about an extra bill.
Then the credit counseling team contacts each of your creditors.
Your creditors agree to accept reduced payments through the program
They also reduce or eliminate interest charges on your accounts and stop penalties.
Once all of your creditors sign off, your program starts.
Each month, you make one payment to the agency and they distribute the funds to your creditors on your behalf.
During enrollment, your creditors will freeze on your accounts. Your counselor will help you work out a budget, so you won’t struggle to live credit-free.
If you ever have trouble making a payment, you can call the agency and they can help you work out a solution. You can leave the program at any time; your accounts are credited for all payments made during the program.
Evaluate your options with a Shenorock, New York certified credit counselor to see if the program is right for you.
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