Note: If you would like to know the process of applying for the AKPK DMP, please take your time to read A Credit Card Debt Woman is Under AKPK Debt Management Program Malaysia.

Of course, you don’t need a debt management program, also known as debt management plan, if you are able to lower the payments and pay down your debt steadily.

There are many ways to lower your monthly credit card payments, but I am sharing with you a few which I have tried before.

1. Pay More Than the Minimum Payments. If you pay more than the monthly required payments, then your minimum payment requirements will begin to drop in subsequent months.

To make this work, you must pay well above your minimum payment requirements AND stop using the credit cards for purchases.

2. Negotiate Lower Credit Card Payments with Your Creditors. Many banks and companies are willing to work out an alternate payment plan with you if you are sincere in paying off the balance.

3. Balance Transfer Your Multiple High APR Card Debt Balance to A New Credit Card with a Much Lower Interest Rate. Take advantage of low interest or 0% interest balance transfers. Interest charges are calculated on the basis of the interest rate or the APR applicable to your credit cards, so a lower APR rate means that your credit card debt will grow at a slower pace and thus switching over to a card with lower APR makes sense.

By transferring your multiple high APR card balance debt to a new low APR credit card, you are able to save money and reduce debt at the same time.

4. Refinance or Second Mortgage on Your House. By doing a refinance or second mortgage on your home, you can use the equity in your home to pay off your high interest credit cards.

The interest rate you get with a mortgage refinance is typically higher than the average, but it is often always lower than your credit card interest rates.

As a credit-card-debt woman who is now in the AKPK free debt management program (DMP), I have tried all the above mentioned ways to lower my credit card payments; I was able to reduce my credit card debt from RM63,809 to RM40,344 in one and a half years.

But why did I still opt for the debt management program to lower my credit card payments? There are a few reasons stated in Why Opting for AKPK Debt Management Program (DMP).

Due to AKPK’s lower debt repayments to my credit cards, I am able to Start Saving Money for Emergency Fund.

There were a few reasons why I signed up a debt management plan and not any debt consolidation or debt settlement.

First off, the debt repayment plan I enrolled in is FREE. There is no initial fee or monthly service fee charged by the credit counseling and debt management agency.

Yes, it’s a free debt management program that is only available in my country. It’s not available to people in the US, UK, Canada and other countries.

As it’s a free debt relief program and I had come to a point that I couldn’t go on paying the huge amount of minimum payments, I decided to enroll in the debt management program.

But why didn’t I DIY debt management to pay off the credit card debt?

Oh, I did. In April 2007, I started self-help debt reduction to pay down some of my credit card debt before I joined the DMP. Between April 2007 and August 2008, I managed to bring down my credit card debt from RM63,809 ($18,000 in USD) to RM40,334.

Just as I thought my effort of tackling my credit card debt would pay off if I kept on budgeting and curbing my spending habits, bad things kept popping up.

First of all, the expenses always surpassed the income. Due to economy downturn, hubby and I were not making sufficient money to pay all the credit card minimum payments, car and home loan installments, utility bills and daily expenses.

When we failed to make payments on time, you know what will come next, right? Yup, banks and creditors started charging late payment fees, over the limit charges, cash advance fees, retail interest charges into my credit card accounts.

One day in August 2008, I told hubby that I had had enough of my credit card debt, non-stop phone calls from banks and warning notices issued by creditors. I wanted to get rid of them.

So, I am now in the free debt management program.

I am still paying my credit card debt, but without much stress. Unlike before signing up with the free debt management program, I was so stressed out by high interest charges, late payment fees and over the limit charges imposed by banks and creditors.

Being in a debt management plan means that I get to have a fresh start with my creditors; save thousands in credit card interest charges, late payment fess and over limit charges; improve my credit score; and most important of all, avoid bankruptcy.

How do you know whether you should go for a DMP? You should go for DMP if you are in any of the situations as given below.

* You have unmanageable bills that you no longer can make another month’s minimum payments.

* You’ve tried out DIY debt reduction plan but it has not helped you to pay down your debt.

* You want to stop getting harassing phone calls and warning letters from banks, creditors or collection agencies.

* You want to lower the interest rate on your bills, eliminate late payment fees and waive over-limit charges.

* You want to get out of debt through an affordable plan.

What is a debt management program? A debt management program, also known as debt management plan, is a debt relief program designed specifically for you who can no longer afford your minimum monthly payments.

It works to reduce the total amount of the debt and restructure it into a single affordable monthly payment.

You make One lower monthly payment to One credit counseling agency on One due date instead of multiple payments to various creditors on different dates.

A debt management plan enables you to get out of debt from under your unsecured debt in three to five years instead of ten, or even twenty years if you make only minimum payments to your credit cards.

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.

I had to resort to joining a free debt management program after failing to see much decrease in my credit card debt. Month after month I threw in chunks of my hard-earned money into making the minimum payments, yet the total credit card debt didn’t seem to drop much.

Was it because I kept adding new credit card debt to my outstanding balance? Noop. It’s because of late payment fees, over-limit charges, cash advance fees, retail interest charges, and miscellaneous fee charges that kept being added into my total debt.

Scary, right? To avoid letting these horrendous fees imposed by banks and credit card companies drags you into a deep debt hole, you need debt management tips to help you get out of debt fast.

1. Credit Counseling. Seek help from a certified credit counselor who can help you navigate through your debt dilemma.

You can either opt for a non-profit credit counseling agency or a for-profit credit counseling company when it comes to credit counseling. The difference is that the former provides free counseling and charges a nominal monthly fee if you decide to enroll in a debt relief program while the latter charges quite exorbitant fees.

2. Debt Consolidation Loan. You should only consider a debt consolidation loan if you are not able to replace your high interest credit cards with one, low interest rate credit card. This is because you may have to pay for an application fee for a debt consolidation loan, whereas with a credit card you would not.

3. Home Refinancing. Refinancing your mortgage allows you to save hundreds of dollars per month on mortgage payments. With lower mortgage payments, the money saved could be used to pay off your credit card debt.

4. Home Equity Loan. Alternately to home refinancing, you may have enough equity in your home to cash out and pay off your debt. Most importantly, credit card debt is not tax deductible, but a home equity loan is. This means you can reduce your debt as well as reduce your tax obligation by cashing out.

See, you have some viable solutions to help you get out of debt fast without resorting to any debt management program, debt settlement plan or bankruptcy that damages your credit score.

According to financial experts, you probably do not need any debt consolidation or debt management if you are able to make your current payments and have reasonable interest rates.

However, if you are suffering from so much unmanageable debt that you are unable to make ends meet and make even the minimum payments, then there is a need for you to really consider if a debt consolidation loan or a debt management program is right for you.

What’s the difference between a debt consolidation loan and a debt management plan?

Debt Consolidation. Debt consolidation is a process where all your multiple debts and loans like credit cards, car loans and other high-interest debts are lumped into a loan with one monthly payment with lower interest rate. With reduced monthly payment and interest rate, you can pay off your credit card debt faster.

The catch is such loan requires that you own a house, so that the loan can be taken against equity in the home. There are risks involved with putting your house up for collateral on a debt consolidation loan.

If unfortunately something unexpected happens to your income and you find that you can’t make the proposed loan payment, you could lose your house.

This is one of the major reasons why I opted for a debt management program rather than debt consolidation.

Debt Management Program. During a free consultation, a certified credit counselor will only recommend a debt management program after going over your income and expenses and finding that credit counseling is not enough to bring your financial back to a manageable level.

If it is determined that a DMP is right for your, the credit counselor will negotiate with all your unsecured creditors to obtain the lowest monthly obligation that satisfies all your current accounts.

Being put in a debt management program means that you make only ONE payment with reduced interest rate to One credit counseling agency on One due date; you no longer have to be stressed by paying multiple credit card payments to various banks on different due dates.

Most important of all, all late payment fees and over-limit charges are waived once you are in a debt repayment plan. No more harassing phone calls from banks, warning notices from creditors and annoying visits by third party collection agencies.

No matter which debt relief program you choose, be it a debt consolidation loan or a debt management program, your ultimate goal is to pay off all your debt and bring your finances and credit score back to the right track.

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!

Named literally after the concept, a debt management program takes your multiple debts and merges them so you can worry less about all the different interest rates and minimum payments being charged every month.

Instead of remembering numerous credit card payments due on different dates, you will be happy to realize that you only need to remember one payment due on one date.

You will easily find a great number of debt management program services offered by non-profit and for-profit agencies and companies that provide guidance when applying for a program that will meet all your requirements.

Before you sign up with any credit counseling and debt management agency, make sure you know all the pros and cons of the one-debt-only programs available in the market. Like credit cards, debt consolidation loans and debt settlement plans, debt management programs are also susceptible to scams.

You must always read the fine print in search of hidden fees and surprise charges that can affect your family’s livelihood. This is your responsibility and no one can be held accountable for poor judgment but the choice maker.

It’s of utmost importance that you choose a certified credit counselor that takes enough time to provide you the assistance you need and calculate your monthly expense and income rate to ensure that you will meet payments without having it reflect on your family’s daily life.

You do not want a debt management program counselor who rushes you into signing up a debt repayment plan without giving you a thorough credit counseling service or letting you ask all the questions you need in order to understand how a free debt management program works to help you.

As a credit card debt woman who started my debt reduction in 2007 but failed to make much progress in paying down my credit card debt due to high finance charges and expensive late payment and over-limit fees, debt is a smoother ride for me under a free debt management program.

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.

Hi, I need money to pay off my credit card debt.

During tough economy times, who doesn’t want money to pay off credit card debts?

The weakening economy and looming recession have no doubt impacted many credit card holders; there is an increasing number of credit card users who have found it hard to settle their credit card bills at one lump sum or make even the minimum payments.

Like you, I want money to pay down my credit card debt. But I am not as desperate as I used to be when it comes to paying off credit card debt fast.

The reason? Well, I am now under a free debt management program that allows me to pay a lower monthly repayment to the debt management agency before the 30th every month.

I am no longer chased by 6 banks for 15 credit card payments.

I do need money to settle my credit card debt but not as urgent as I need it for my emergency fund. I need money to hit my goal of $1,000 emergency fund.

Once I have the initial $1,000 (RM3,550) as emergency fund, I can start paying off credit card fast.