Debt Management Plans
Debt Management Plans (DMPs) are voluntary repayment plans that allow you to repay your debts in a reasonable time frame. With a DMP, you make one payment a month to us and we pay each of your creditors.
Our goal is to provide you with comprehensive money management, a written assessment and an action plan, when it is applicable, to help you reach your goals.
A certified financial counselor can help you review your situation and determine if a DMP is right for you.
Benefits of a Debt Management Plan
- Lower interest rates
- One simple monthly payment
- End collection calls
- Debt free in three to five years
- Eliminate late and over-limit fees
- An alternative to bankruptcy
Debt Management Plan Costs
There is an initial, one-time $25 charge for counseling, even if multiple appointments are needed.
If you sign up for a DMP, there is a fee of 10% of the monthly payment up to a maximum of $75 per month to administer the plan. The savings from signing up on a DMP will far outweigh the monthly service fee, creditors will stop calling and you’ll get out of debt.
Frequently Asked Questions
Some creditors will stop or reduce their finance charges or other fees for clients on a Debt Management Plan. Policies about reducing or continuing finance charges vary from creditor to creditor. We work with credit card companies, medical debt, payday lenders, collection agencies and other creditors. Many creditors will accept reduced payments from individuals for a short period of time. If creditors stop or reduce their finance charges this can significantly increase the benefit of being on a debt management plan.
FICO scores are the most widely used credit reports. The MyFICO website says, “Using a credit counseling service and having this reported in your credit report should not have any negative impact to your FICO score.”
If you go on a Debt Management Plan, the impact on your credit report will depend on the creditor’s policy in reporting to the Credit Bureau and the status of your credit report prior to your working with us. The DMP does not interfere with the contract you have with that creditor. How your credit report will be viewed after the DMP starts will depend on the policies of the lender or other creditor.
No one will know you have an appointment with us unless you tell them. If a creditor calls, we will only verify the appointment you made with us if you authorize it in writing. All counseling is strictly confidential.