Speaking of reasons why I enrolled in AKPK debt management program (DMP), I have cited quite a few reasons whenever I mention my AKPK DMP.

I am sure they are of the same reasons given by others who were or are in debt management plans.

Let me share with you top 10 reasons why people with credit card and personal debts, including myself, have turned to debt management programmes to pay off the debt.

May the reasons stated below help you make up your mind whether a debt management program is the right debt relief option for you.

1. You have tried out self repayment plan but it doesn’t help much to decrease your debt balance. I did try out self credit card debt reduction from April 2007 to August 2008 and managed to bring down my credit card debt from RM63,809 to RM40,344. But since then, the amount of debt balance didn’t decrease much.

2. You are so deeply in financial crisis that you need to get rid of your debt before any legal proceeding such as being sued for bankruptcy starts. Although I was able to bring down my credit card debt through self debt reduction plan, I still decided to turn to AKPK debt management program.

Why? Well, I couldn’t bear with the late payment fees and over-limit charges imposed by banks anymore; the amount of late payment fees and over the limit charges was so much that it made my efforts of paying down my credit card debt a waste of my hard-earned money.

3. You don’t want to be disturbed by irritating and harassing phone calls from debt collection agencies. Ask anyone who has been behind their payments or has missed a few credit card payments, they will tell you how stressful and depressing it is when it comes to handling calls from banks and collection agencies, and also piles of notices and warning letters.

4. You would like to lower the interest rates on your outstanding balances so that you are able to save money. From 18% interest rates to 6% or 7% interest rates, I must say that it’s a huge saving.

5. You don’t want to pay extra charges due to late payment. One day in August 2008, I told hubby that I had had enough of paying the never-ending late payment and over-limit fees charged by banks that brought us to nowhere, but increasing credit card debt!

6. When your budget is too tight, a debt management plan allows you to lower your monthly payment. Due to economy downturn, hubby’s meager income and my decreasing online income made us opt for lower payments for our credit cards.

Previously hubby and I had to pay more than RM2,500 for the credit card minimum payments. But with AKPK’s debt repayment plans, we are allowed to pay much much lower payments to our creditors. My DMP is RM320 per month while hubby’s DMP is RM360.

7. You have no idea about managing your own debt at all and you need proper guidance.

8. You have multiple bills and you can’t manage them efficiently.

9. You find that you need a professional credit counselor to assist you to work out a budget based on your income and commitment.

10. Your credit score is in a bad shape and there is a need for you to rebuild it through a proper debt management program.

As a credit card debt woman who has been in a free debt management program since 2008, I am always asked why I opted to sign up a debt management program and didn’t do it myself.

First off, the debt management program I enrolled in my country is FREE; there is neither enrollment fee nor monthly service charge.

As far as I am concerned, there is only ONE credit counseling and debt management agency in my country. It’s different from the US where there are lots of non-profit and for-profit credit counseling agencies.

Since it’s free debt management plan that involves zero service fee, why not?

Next, contacting banks and negotiating a partial settlement or a reduction in the bills is more difficult than you think.

I DID try to call up and write in asking for lower interest rates. Out of six banks, only one bank agreed to reduce the interest rate to 9%. A few banks were between 12% and 15% while the rest declined to lower the 18% per annum interest charge.

When I found out that my credit counselor was able to negotiate with banks to reduce my interest rate from 18% to 6% and 7% for some banks, and most important of all, to waive late payment fess and over limit charges, it didn’t take me long to make up my mind.

I signed up the free debt management program after the certified credit counselor explained in details what a debt management plan was and reminded me a few times that all my card accounts would be included in the program and closed.

Take note: All Your Credit Card Accounts Will Be Closed Once You Are In A Debt Management Plan (DMP). Shutting down all your accounts means that it’s likely to damage your credit score.

Since my maxing out most of my credit cards had already harmed my credit utilization ratio, a key component of credit scores, it’s okay to shut down all card accounts.

If you are in the US, make sure you sign up with a credit counseling agency affiliated with the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.

An accredited credit counseling and debt management agency typically charges $30 one-time setup fee, and $15 per month while you’re on the debt management plan.

If you don’t want to deal with your creditors directly and you need help with all of your credit cards, opt to go through a debt management program.

Congratulations on getting your very first credit card! It’s my hope that you can use your credit card wisely to avoid getting into deep credit card debt and having to resort to debt consolidation, debt management program, debt settlement plan or bankruptcy.

If I had been careful when it came to using credit cards, I wouldn’t have gotten myself into deep credit card debt and enrolled in a free debt management program known as AKPK debt management program to help me lower my monthly payments from more than RM1,500 to RM320, reduce interest rates from 18% to 6% or 7%, waive late payments and over-limit charges.

Credit cards, when used in moderation, could be helpful in managing your finances. But splurging through the use of credit cards is almost financial suicide.

To prevent you from acquiring credit card debt that leads you to financial death, let me share with you how you can manage the way you use your credit card.

1. Prioritize Your NEEDS Before Your WANTS. Buying big ticket items that you don’t really need might give you that instant gratification that impulsive buyers are addicted to. But that temporary high would eventually turn to long-term down feeling due to your high-interest added credit card debt.

Imagine after 15 months of owning the 42″ Plasma TV, you are still paying down the amount owed, its interest charges and interest on the owed interest charges! So depressing!

2. Never Go Over Your Credit Limit. In order to be able to manage your credit card payment, never go overboard when it comes to your credit limit. If it’s possible, just use about two-thirds of your limit.

3. Keep the Statement of Your Credit Card Account. For easy reference in future, keep a record of all your credit card transactions.

Always spend some time comparing the list of your purchase for the month with the statement to prevent being charged inaccurately. If your list and the statement of account do not match, report this to your bank.

Self-control is still the best way to prevent getting piled up debt. I have been there before and I tell you, it’s no fun having accumulated debt.

You know how suffocated and stressful I was before I signed up with a free debt management program? My piled up debt was actually caused by late payment fees, over-limit charges and miscellaneous fee charges.

Hubby and I were in the city for 6D 5N. While hubby was attending a 3D 2N seminar, I was staying at my uncle’s place.

Overall, we spent less than RM100 on food, shampoo, toothpaste, parking fees and discounted trousers during the trip. Unbelievable, right?

You see, hubby’s meals and seminar, petrol and accommodation fees were all fully paid by his school while my accommodation and meals at my uncle’s house were free.

Whenever I went out with my uncle’s family or my sisters, they were the ones who insisted on making payments.

My younger sister who knew my financial woes better kept buying foods and clothes for me. Of course, she paid cash. I am happy that she loves using cash, not credit cards.

I only realize the power of using cash after I was so deeply in credit card debt and had to sign up with a free debt management program called AKPK debt management programme (DMP) in my country.

I am grateful that I was approved of the debt repayment application last October and given a chance to bring my financial ruin back on track without having to declare bankruptcy.

Use cash, if you don’t want to end up in a debt management program to help you get out of credit card debt.

Use cash so that you don’t have to pay high interest rates, late payment fees, over-limit charges and other miscellaneous fees. And most important of all, you don’t have to pay interest on the interest charges you owe!

Congratulations if you are able to keep your credit card debts at reasonable and manageable levels. Unlike you, my credit card debts ended up incurring exorbitant interest charges, late payments fess and over-limit charges until I no longer was able to make next month’s payments and had to resort to a free debt management program.

If you ever find yourself having problems with paying off your credit card debts, the first course of action is to take a look at the budget. Finding ways to cut back on unnecessary expenses can help you pay down debts and keep monthly bills current.

But what if you can’t settle your debt problems with budgeting? Well, seek assistance from debt help relief options to help gain control over your debts so that your credit rating will not suffer badly.

Debt Consolidation. You may turn to debt consolidation as an answer to your debt problems. Debt consolidation enables you to transfer all your high-interest credit card debts to a lower interest credit card, or you put up the equity in your home to get the money to pay off your debts.

While both unsecured and secured debt consolidation options provide lower payments, they are with some drawbacks. Closing numerous credit card accounts and putting all of your debts into one account can negatively impact your ratio of debt to available credit, lowering your credit score.

And if you use your home equity to secure the money needed to pay off debts, you’re putting your home at an unnecessary risk. You face the risk of losing your home if you fail to make payments.

Credit Counseling. Another popular debt relief option is credit counseling. Credit counseling agencies, non-profit or for-profit, offer help with budgeting, and if it is determined that budgeting is not enough to solve your debt problems, they will sign you up with a debt management program.

A debt management program, also known as debt management plan, involves negotiation with creditors to reduce interest rates, eliminate late payment fees or over the limit charges, and lower payments.

You make one monthly affordable payment to the credit counseling agency’s collection account, and the agent forwards payments to each of your creditors.

A DMP can help you get out of debt faster, but it can also have negative impact on your credit score. As a note is added to your credit report stating that you are in a debt management plan, you no longer can get a new credit card or loan. However, the notation is removed once you’ve settled your debts.

Either you decide to enroll in debt consolidation or a debt management plan, it’s important to make sure you’re dealing with a reputable credit counseling agency that is a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA) or the National Foundation of Credit Counseling (NFCC).

As AICCCA and NFCC regulate and monitor member agencies to make sure that they operate legally and ethically, you save yourself from being scammed by unscrupulous credit counseling agencies that charge high fees or fail to make payments to creditors on time.

To prevent yourself from facing undue stress caused by spiraling debts and damaging credit score, it’s wise to seek help at the first sign of trouble.

You are lucky if your debt hasn’t landed you on the need of enrolling in a debt management program.

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.

You are paying the credit card minimum payments month after month, but you feel that you are not getting anywhere. Most importantly, you feel that you are just throwing your hard earned money away to the credit card companies.

I understand how you feel now. I was in the same situation with about $13,000 in credit card debt before I enrolled in a free debt management program in my country.

$13,000 is equal to RM45,500 in my country’s currency. It’s a huge credit card debt that my hubby and I no longer could go on paying. High interest rates, late payment fees, over-limit charges, cash advance interest charges, retail interest charges were pumped into our existing credit card debt month after month mercilessly.

Phone calls made to banks and letters faxed to credit card companies asking for lower interest rates were either ignored or granted with a drop of one point or two points from 18% to 17% or 16% that made no difference at all.

Thinking of late payment fees, over-limit charges, cash advance interest charges, retail interest fees and other miscellaneous fee charges just drove me crazy.

If you have been thinking of declaring bankruptcy to get rid of your debt, think twice. There are better financial relief programs that you can consider before resorting to filing for bankruptcy.

I used to think that going bankruptcy would be my only solution to get rid of the credit card debt. Apparently I was wrong.

You know, you can consider credit counseling, debt consolidation or debt management program to help you find financial relief.

Make sure you find the National Foundation for Credit Counseling (NFCC)’s nonprofit affiliate, usually known as Consumer Credit Counseling Services (CCCS) for a debt management program.

Legitimate credit counseling agencies are affiliated with the National Foundation for Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCCA).

There are simply too many fly-by-night companies that disappear with your money or leave you with more debt that you have to be careful when it comes to choosing a reliable credit counseling and debt management program agency.

Have you been told that your credit score will be badly damaged if you are in a debt management program? Well, I was told many many times about it and was advised to DIY debt management myself without the help of credit counseling agency so that my credit score wouldn’t get hurt.

At that time when I was thinking about getting out of credit card debt with a free debt management program, I was already a few months behind my monthly payments and wasn’t able to pay the minimum payments.

Not only were there non-stop phone calls and letters from banks and creditors, I started getting phone calls and visits from third party collection agencies!

If you had been in my shoes, would you have thought about credit score or cared if a a debt management program would damage your credit score?

I didn’t care. What I wanted to do at that time was to get into a shelter for a temporary relief; a credit counseling and debt management agency for a temporary financial relief.

I needed to enroll in a debt management program that could consolidate my multiple credit card payments into one payment and stop all the harassing phone calls, warning letters, third party collection agencies, exorbitant late payment fees and over-limit charges.

Since I was put in the free debt management program in October 2008, I have been able to heave a relief. Paying ONE smaller monthly payment to ONE credit counseling agency on ONE due date enables me to save more money for the emergency funds and pay my credit card debt without much stress.

It’s true that if you have loads of debt but are current on all your payments, your credit score may drop when you enter a debt management plan.

But if you have several late payments or are currently way behind on any credit payments, chances are a debt management repayment plan actually improve your score.

Enrolling in a debt management program is a long term decision, and the fact is repaying your debts is the best thing for your credit score.

I don’t really know how much credit card debt hubby and I have now.

The last time I mentioned our credit card debt was in July 2008 and it was $12,916, approximately RM45,200.

During the process of debt management program applications, some banks took advantage of us by adding extra debt to our credit card accounts through late payment fees, over-limit charges, cash advance interest fees and other miscellaneous payments.

It’s my guess that our credit card debt may have shot to RM48,000 or higher before our debt management plans were approved.

Since my first AKPK debt management program repayment in October 2008 and hubby’s AKPK’s DMP repayment in February 2009, we had requested banks to revert the fees and charges that were not supposed to be charged during the process of the DMP applications. Unfortunately, some banks ignored our requests.

Some of the banks have also stopped sending us the monthly statements. Talking about statements, you know, I am no longer dreading getting the letters from the mailbox.

I used to think about what kind of letters and bills would be in there and I would sometimes let the unopened letters pile up.

Since I am very busy with building niche blogs to make money now, I don’t bother how much the credit card debt is.

So long as hubby and I are in the free debt management programs and the amount of debt is decreasing, it doesn’t really matter how much we still owe.

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.