Tag Archives: debt management counselor

Before Enrolling In A Debt Management Plan (DMP), Attend Credit Counseling Briefing

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Posted by Vedis the DMP Blogger on August 26, 2009 – 10:12 am
Filed under Credit Counselors, Debt Management Programs, Debt Management Tips

Are you currently overburdened with innumerable debts that you are thinking of getting help from a debt management plan (DMP) to help you get over the debt burden?

As a credit card debt woman who is now in a free debt management program, let me share with you what a debt management program is. :-)

A debt management program, also known as debt management plan, is a program designed to combine all your existing multiple unsecured debt payments from credit cards, students loans, personal loans, and medical bills into one payment.

So instead of paying multiple payments to various creditors on different due dates, you make a single payment to the credit counseling company you sign up the debt management plan with. The credit counseling and debt management company is then in charge of distributing the debt repayment to all your creditors.

The consolidation of multiple monthly payments into one monthly payment usually results in lowering the total monthly payment previously paid and thus allowing you to continue to pay your debt with lower payments and reduced interest rates and most important of all, restore your credit score.

However before you enroll in a DMP, it’s important that you attend a credit counseling briefing first. To effectively use your time with a credit counselor, make sure you have certain pieces of information in hand before your first meeting.

If it is determined that a recommended budget is enough to help you get out of debt, your credit counselor will NOT enroll you in a debt management plan.

Beware of credit counselor that automatically signs you up with a debt management program! This means your debt management counselor does not have your interest at heart; he tries to make money from you through collecting fees.

A certified credit counselor will help put your debts and finances in order by helping you develop workable budgets and money management skills and pay off debts.

Seek Help From Credit Counseling Service Or Debt Management Program?

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Posted by Vedis the DMP Blogger on July 8, 2009 – 2:03 am
Filed under Credit Counselors, Debt Management Programs

Are you tired of paying a pile of debts that just don’t seem to decrease as time goes by? If so, seek assistance from credit counseling service to help manage your debts or enroll in a debt management program to pay off your debts without stress.

Getting help from credit counseling service doesn’t mean that you must participate in a debt management program. You do not need a debt management plan if a credit counselor determines that you just need a little advice on budgeting and money management.

But if your unsecured debts including student loans, payday loans and credit card debts are out of control, then you need a qualified debt management program counselor to take time to go through your debt and income levels, discuss debt relief options for getting out of debt, and explain the pros and cons of a debt management program to you.

Beware of credit counseling agency that enrolls you in a debt management program automatically without providing assistance with budgeting and money management!

Once it is determined that a debt management plan is the right debt relief plan for your financial situation, the credit counselor will start negotiating and creating a payment schedule with each of your unsecured creditors in an attempt to lower the total amount of money owed, reduce your interest rates, and have all late fees and over-limit charges removed.

Make sure the monthly payment that the debt management counselor works out for you is an amount that you can afford; a debt management repayment which is higher than what you can afford each month is not going to help you make any progress.

Credit Counseling Or Debt Management Program?

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Posted by Vedis the DMP Blogger on June 13, 2009 – 8:59 am
Filed under Credit Counselors, Debt Management Programs

Wonder if you just need a credit counseling session to advise you on budgeting and managing your debt or a debt management program to help bring debt relief without stress?

Well, answer a few questions here: :-)

1. Have you been paying off your balance in three months when it used to take one month?

2. Do you always not know the amount you owe until your bills arrive?

3. Have you been maxing out your credit cards regularly?

4. Have you been paying bills with card cash advances?

5. Have you been paying off one credit card bill with another credit card?

If you answer Yes for most of the questions and you have only been able to pay just the minimum amount for your credit cards every month, this may indicate that you are in deep debt trouble and in need of a credit counseling session with a debt management counselor to educate you on how to budget and keep your debt under control.

If after going through a very thorough review of all your bills, income and expenses and the credit counselor finds that you can’t earn quite enough to make ends meet, he will suggest you to enroll in a debt management program.

Once it is determined that you need a debt management plan to help you pay down your outstanding debt, the certified credit counselor will start negotiating with your creditors to reduce the interest rates and waive the late payment fees and over-limit charges.

By combining your multiple credit card payments into one smaller and more affordable monthly payment, you don’t have to worry the possibility of going into further debt or into bankruptcy.

And when you have completed your payments that take approximately between 36 to 60 months, they’ll help you reestablish your credit.

What You Should Know About Free Debt Management Program

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Posted by Vedis the DMP Blogger on May 25, 2009 – 7:15 am
Filed under Debt Management Programs

Debt Management ProgramA debt management program, be it free or paid, is a debt relief option for you and your family when you feel that you have more creditors than you can handle and you are unable to make another month’s minimum payments for your credit card debt, student loans, and other personal and unsecured debt.

As the name explains, a debt management program can help you to organize your debt into more affordable payments, with the benefit of facing just one interest rate instead of 3 or 4 or more.

Sure, paying one debt is better than paying several, but you must be careful of the conditions and interest rates that a debt management program apply.

There are several, or better said, plenty, of non-profit and for-profit credit counseling and debt management program organizations and firms that can aid you and guide you into the right direction when it comes to choosing a DMP that suits you.

Beware of debt management program agencies that are only concerned on profiting from your debt without considering what is best for you and your family economics.

Run away too if a debt management counselor rushes you into signing up a debt management plan without taking time to provide you with an income and expense assessment to determine what kind or amount of payment you can make per month, or whether a debt management program is right for you.

A reliable certified credit counselor should complete a full financial assessment and go over all your debt relief options before determining if a debt repayment plan is right for you.

He should also give you a full breakdown going over any fee you’d be charged and what you would be saving by using a debt management plan.

As in any financial product it is imperative that you are fully informed of all benefits, fees, interest rates and every other aspect of such product, however banal it may seem.

Debt management program is a financial tool designed to make your debt, and life, easier to handle. However, you should protect yourself and your family by doing research first and asking every question in the book. Don’t forget your magnifying glasses. Always attack that fine print!

You Can Be Debt Free With A Debt Management Program

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Posted by Vedis the DMP Blogger on May 5, 2009 – 6:38 am
Filed under Credit Counselors, Debt Management Companies, Debt Management Programs

Credit Card DebtWith the unemployment rate and consumer debt continuing to rise, the number of people seeking credit counseling services, enrolling in debt management programs or filing for bankruptcies is on the increase.

You may think that those who are jobless and can’t pay the bills are the ones who are keeping the phone lines ringing at credit counseling agencies across the nation. Well, not really. People who are still working but are caught in a debt spiral and unable to pay next month’s bills are also calling for help.

If you are on the verge of bankruptcy and you badly need to avoid filing for bankruptcy, make an appointment with a certified counselor from a reputable credit counseling company and let him help you review your financial situation.

A good credit counselor will take time to review your unsecured debt, such as credit cards, medical bills and personal loans, and secured debt, such as mortgages and car loans, as well as household expenses and personal income to find the best debt relief option that works best for you to pay off your debt.

Make sure you avoid debt management counselor who promises to enroll you in a debt management plan in less than 20 minutes! Remember, the less time spent with you, the less a credit counselor works in your best interest.

Most of the time, you don’t need a bankruptcy. There are debt relief programs such as debt consolidation, debt management programs or debt settlement plans to get you out of debt without declaring bankruptcy.

A debt management program, be it non-profit or for-profit, is designed to help you restructure your multiple payments into one smaller monthly payment that you can afford after your credit counselor negotiates with your creditors and establishes a debt repayment program.

The smaller monthly payment allows you to make the payments and not go into further debt or into bankruptcy.

You can be debt free with a debt management program without the terrible blemish of a bankruptcy on your record.

Note: I am a credit card debt woman who has been in a free debt management program since October 2008 and have felt the benefits of debt management program, so it’s easy for me to share with you about DMP more than debt consolidation and debt settlement plans.

Free Debt Management Program Helps You Get Out Of Credit Card Debt

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Posted by Vedis the DMP Blogger on April 26, 2009 – 1:43 pm
Filed under Debt Management Programs

Are you drowning in multiple debts? Are your earnings for the month not enough to cover the monthly repayments required? Is your mail box stuffed with warning letters and legal notices from credit card companies? Are there times when you just want to run away from your credit card debts and creditors?

I used to be like you too – I was drowning in heaps of secured and unsecured debts; my monthly income was always not enough to pay the minimum payments; the mail box was filled with warning notices and legal letters from credit card companies and there were many times that I just wanted to run to another country to start a new life.

However, you can get out of this terrible debt situation by signing up a free debt management program.

Debt management programs, both non-profit and for profit, are programs designed to help those who can no longer make payments on their cards, and are used as a last step toward bankruptcy.

When you enroll into a free debt management program, a credit counselor will speak to creditors on behalf of you to make negotiations about your outstanding debts, interest rates, and late payment fees or over-limit fees.

A good debt management counselor who is in charge of negotiating with your creditors to reduce your monthly payments to match your ability to pay can help you reduce your monthly repayments to your creditors up to 75%.

The credit counseling agency that takes one monthly sum from you will be in charge of redistributing the funds to all your creditors.

Once you are in the debt management program, your creditors will not contact you to demand you to pay your debts.

Debt management plan tends to have less impact on your credit score, as compared to bankruptcy, but requires that you have sufficient income to cover your living expenses, plus the plan payment.

As a conclusion, debt management program enables you to easily reduce your debts and make single monthly payment to one credit counseling agency on one date.