Read Others’ Experiences Using Non-Profit Debt Management Plans – Part 2

This is the continuance post of Read Others’ Experiences Using Debt Management Programs – Part 1.

Once it is determined that you are eligible for a debt management program, your credit counselor will negotiate with your creditors for lower payments and interest rates.

Instead of making multiple credit card payments to different banks and creditors on various due date, a debt repayment plan enables you to make ONE payment to One agency on ONE date.

You start making payment to the credit counseling agency’s collection account and the monthly payment will then be distributed out to your creditors.

Take the late payments or insufficient funds seriously! They can cause your debt management program to become null and void, so be in time or on time when it comes to making your monthly repayment.

While in the DMP, you can’t apply for any new credit cards or loans. I have been living without the convenience of a credit card for more than 7 months already.

I have been told by my counselor that I can make extra payments to some of the large credit card balances while I am in the program. Just make sure that I have some emergency funds before I go to settle a large credit card balance.

If your debt is up to your ears and you are looking for debt relief options to bring relief, a debt management program can be just what you need.

The Federal Trade Commission (FTC) has very useful information about using debt management programs (DMPs) effectively and about how to know if the program is legitimate.

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