Considering A Debt Management Program (DMP)?

Okay, it’s a fact that you are up to your head in debt and you are so suffocated by it that it’s affecting your daily routines and thoughts. You have no idea what to do.

I understand. I have been in your shoes before enrolling a free debt management program in my country.

OK, take a breath and look at your debt with a clear head. Is your debt so unmanageable that you can’t even make next month’s minimum payments? If so, you should consider either credit counseling, debt consolidation or a debt management program.

Debt management program, also called debt management plan, is a program designed to help you get out of debt by combining all your multiple debts with various interest rates into one monthly repayment that you can afford.

This means no more driving to different banks to pay various cards on different due dates. In a debt management program, you just need to make One monthly payment to One agency on One due date!

The affordable monthly payment that your certified counselor works out with you is a fair amount of cash so that you have some extra money saved for yourself as emergency fund.

Once you are placed in the debt management program, all your creditors will cancel your card accounts. This is good because you will have no way to add new credit card debt to your existing debt; no excuse to use them for so called ‘emergency needs’. If you have no credit cards, you can’t be tempted to use them.

Once you have extra money left every month, it’s important to start saving 5%-10% of your income as emergency fund. As for new purchases, save until you have enough money to buy them with cash. Remember the immediate gratification of making purchases through credit cards that threw you into the deep debt hole? You wouldn’t want it to happen again.

If you are able to stay in the debt management program until your debt is paid off; do not add new debt to existing debt; and save up the extra money for emergency fund, it’s for sure that you can make your way out of debt pretty soon.

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