Since I was approved of the AKPK debt management program (DMP), I have always been asked by readers or friends why I chose to get out of debt with a debt management program.

There were several reasons why I enrolled in a debt management programme and not debt consolidation or debt settlement. Debt settlement? I wonder if there is any debt settlement plan in my country.

First and foremost, it’s FREE to join the AKPK debt management plan. You are not charged any enrollment fee or monthly service fee. Yes, the DMP provided by AKPK (Agensi Kaunseling Dan Pengurusan Kredit) is free; it comes with zero enrollment fee or monthly service charge.

Since the program is free to join and at that time I had had enough of my piled up credit card debt, I made an appointment with a senior credit counselor in Ipoh branch.

Did I do any DIY debt management to get rid of credit card debt? Of course, I did. In fact, I began budgeting and cutting spending starting April 2007 to pay down my credit card debt before finally signing up with the AKPK program.

In a span of almost one and a half year, I managed to pay down my debt from RM63,809 ($18,000 plus) to RM40,344.

Just as I thought I could slowly pay off my credit card through budgeting and cutting back on spending, bad things crept in one by one.

Firstly, hubby and I were not able to generate more income to pay the bills. Money was always not enough when it came to making payments to credit cards, home and car loans, utility bills and personal expenses.

We started being in late in payments or skipping some of the credit card minimum payments. As a result, late payment fees, penalty charges, over-limit fees, and other miscellaneous fees began piling up and added to my already piled up credit card debt.

One day after watching the AKPK’s TV commercial ad, I decided to pay a visit to the agency and enroll in its debt repayment plan to help me get out of credit card debt without stress.

Are you tired of paying your credit card debt month after month without seeing much progress? If so, it may be time for you to get debt management program help to achieve total debt elimination.

Once you have established your degree of need for debt help, the next step of your debt management program is to decide whether you will enroll in a debt management plan designed for you by a credit counseling agency or do it yourself debt management to achieve total debt free.

If you have made the decision to go debt free through a DMP offered by a credit counseling and debt management company, make sure you opt for a not-for-profit credit counseling agency that is of a member of the National Foundation of Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCCA).

It won’t be worth your time or effort to choose a debt management company that charges a large monthly fee for their services as your debt problems may get even worse.

By attending a credit counseling briefing, a certified credit counselor will let you know the debt relief solutions available for your situation.

If it is determined that you need a DMP to help you get out of debt, your credit counsellor will contact your creditors in an attempt to stop harassing telephone calls, lower your interest rates, lower your monthly payments, and perhaps stop late fees and over limit fees.

So a debt management program is created to help reduce your overall monthly debt, help you save on interest fees, and improve your credit rating by paying creditors on time.

Take note, though. Before signing a debt management plan contract, make sure the written agreement detailing all the services discussed and the exact costs you will have to pay.

Whether your aim is to restructure your multiple debts into one affordable monthly payment, pay off all your bills sooner than before, avoid late charges, put an end to harassing phone calls from your creditors, save thousands of dollars in interest, lower your monthly payments substantially or avoid bankruptcy, you can achieve it with a debt management plan.

Do you know that credit card debt is a major cause of over one million bankruptcies each year? I almost opted for bankruptcy when my credit card debt was out of control due to high interest rates, late payment fees, over-limit fees, cash advance fees, retail interest charges and other miscellaneous fees imposed by banks and creditors.

Had it not been the option of enrolling in a free debt management program, I would have filed for bankruptcy in 2008.

If you are a new credit card holder, you need to keep in mind that the real cause of your financial mess is you. Make sure you don’t put your blame on the credit cards and the credit card companies when your credit card debt is out of control.

One shopping spree does not usually cause high debt. It is usually a pattern that consists of gradually increasing purchases that add up to a large debt.

It’s fortunate that you are at the stage where your credit card debt is still under control. To make sure that you do not get into deep debt trouble is to start spending less than you make.

Spend Less Than You Make. It sounds simple, right? Well, it can be very difficult if you have a problem with willpower. It is important to stick with spending less than you make or you will find yourself in exactly the same place as I was before and had to resort to debt relief help option like debt management plan to get out of debt.

If you can summon enough willpower and strength towards your finances and spending, then you will find yourself the winner in the game of debt without the need of a debt management program.

As someone who has been there and done that, my advice is – If you don’t have the money to spend, then don’t spend it!

If you’re in debt up to your ears then you’re probably trying to do something about it. There are many options but essentially it comes down to debt management programs versus debt settlement plans.

Although neither of the debt relief options is really something you want, it is sometimes necessary to have a better understanding of the two.

Debt Management Programs. Debt management programs essentially do what they say. The credit counseling and debt management agencies take all your bills, compile them into one lump sum, and then you make one monthly payment on that.

Sometimes however certain debt collectors will not want to work with debt management programs because it means they will get less money. Most prefer to work with major debt management groups.

During debt management usually you cannot apply for any credit cards or lines of credit with banks or credit card companies. This will last until the debt repayment program has been completed.

Debt Settlement Plans. Debt settlement is where the debt settlement companies take your money every month, but don’t make monthly payments to your creditors. Instead, they put it in a trust account, negotiate your debts with your creditors and then make a lump-sum payment when there’s enough in your account to pay a creditor in full.

Take note that debt settlement companies do not ask your creditors to stop all interest charges, late fees and over limit fees from accruing. This means while the negotiations with your creditors are ongoing, your bills will continue to grow!

If it’s so unfortunate that you’re sued and a judgment is brought against you, you’ll owe more money than before!

The process of a debt settlement can also damage your credit depending on the size of the debt. If you cannot make it usually you are turned over to a collection agency, or your goods are repossessed.

The one major difference between debt management programs and debt settlement plans is your credit. If you go with a debt management plan, your credit in most cases will be wiped clean and you can start rebuilding it. If you use a debt settlement plan however your credit will be badly damaged and you’ll have to start picking up the pieces and superglue them back together.

You usually won’t consider either of them unless you’re in financial trouble. Which, if that’s the case then you’re going to be paying attention to the differences between them. Just remember management equals monthly payment, settlement equals one big lump sum.

If neither of the debt relief options is really something you want to end up doing, then you should always try to keep your debts paid down to avoid having to resort to either a debt management program or a debt settlement plan.

Do your monthly minimum credit card payments that exceed 15% to 20% of your take-home pay make you feel that you just can’t face another month of credit card bills? If so, you may want to consider enrolling in a debt management program.

A debt management program, also known as debt management plan, is individually designed to combine your multiple credit card payments into one low monthly payment and then the monthly payment received is disbursed to your creditors on your behalf by the credit counseling and debt management agency.

Besides getting a low monthly payment, a DMP can get you a reduction in interest rates, an elimination of finance charges, late payment and over-limit fees, relief from collection agents, and one-stop bill paying.

Before signing up with any credit counseling agency, beware of e-mail and TV ads for credit and debt management companies that make tons of promises.

Not that there aren’t reputable debt management firms. There are. But credit counseling agencies tend to fall into one of three categories: the good, the bad and the ugly. Knowing the difference can save you a lot of heartache and money.

Look for reputable non-profit credit counseling agencies known as consumer credit counseling services (CCCS) affiliated with the National Foundation for Credit Counseling (NFCC).

You must avoid debt management companies that:

• Have an “unsatisfactory record” with the local BBB. Serious, unresolved complaints, such as late payments to creditors and false advertising are some contributors to the “unsatisfactory record” at the BBB.
• Don’t spend 30 minutes conferring with you. If a credit counselor promises to enroll you in a debt management plan in less than 30 minutes, well, get outta Dodge. The less time spent with you, the less a credit counselor works in your best interest.
• Don’t let you review your contract before signing it. A good debt management agency will let you review a contract at home before signing it. It’s recommended that you compare three or four contracts from different companies to see who’ll give you the best deal.
• Automatically enroll you in a debt repayment plan.
• Expect upfront fee equal to one month’s debt payment.
• Require “voluntary” contributions. Beware of of credit counseling agencies that say they have no upfront fees but tuck a sentence into your contract stating, “I voluntarily agree to contribute one month’s payment…”
• Pay your creditors late, despite your making on-time payments

It’s important to choose a certified credit counselor that takes time to: review your assets, liabilities and spending habits; explain the benefits of a debt management program; work out an affordable amount that you need to pay each month to clear your debt; and help you come out with a plan that can clear your debt within five years.

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.

Isn’t it frustrating to see the amount you owe rarely decreases even though you are working very hard to make payments to your credit card debt? I understand your frustration as I had been like you before I enrolled myself in a debt free management program or DMP.

Being in a free debt management program enables me to regain my financial control, establish a budget, save for emergency fund and get myself out from under my debt without stress.

If credit card debt is a problem for you, you might want to start looking into debt management programs and learning more about the advantages of the programs to see whether or not they would help you get out from under the debt that you’ve accumulated.

Debt management programs, also called debt management plans, help you negotiate lower interest rates, get late or over-limit fees waived, work out a payment schedule that’s acceptable to you and to your creditors, and consolidate your monthly payments into one.

Each month after you make a regular deposit to the credit counseling agency’s collection account, in turn, they will forward payments on your behalf to your creditors.

Take note that some debt management companies do charge for their services, usually as a modest monthly fee while there are non-profit credit counseling agencies that provide free debt management programs.

Always do your research and pick the most reliable credit counseling agency before you commit to a debt management plan. There are simply too many debt management companies that are notorious for sending payments late and getting their clients into trouble with creditors.

To reduce your credit card debt and return you and your family to a higher quality of life without filing for bankruptcy, debt management programs are worth looking into.

Are you fed up with the hidden and miscellaneous fees that you thought they were not in the terms and conditions when you applied for the credit cards?

Like most credit card users, I am so sick of paying late payment fees, cash advance fees, balance transfer fees, and other hidden fees charged by credit card issuers.

I am sure most credit card users are like you and I only know there are annual fees and balance transfer fees. You only get to know there are not so obvious fees when your credit card bills arrive at the end of the month.

Do you actually spend your time reading the tiny prints of terms and conditions for your credit cards to check out other fees? I don’t and I bet most credit card users don’t do so.

As you don’t careful pay attention to the terms and conditions thoroughly, you have to pay through your nose for any hidden and miscellaneous fees imposed by credit card companies.

Before you apply for any new credit card in the future, check if there are not so obvious fees charged by the credit card issuer.

1. Late Payment Fee. You know late payment fee, but do you know how this fee is structured? For you knowledge, most late payment fees charged by major credit card companies are based on a tier-based structure.

As an example, you know there will be a $20 in late payment fee if your balance is less than $250 and there will be more fee if your balance is over $250. But how much you will be charged if your balance is more than $250? You have to read the terms and conditions thoroughly to for this information.

2. Cash Advance Fee. Do you always assume that there are no cash advance fees attached to your credit cards? You are wrong. As a matter of fact, most credit card companies charge a percentage fee, usually 3%, for cash advance fees. The percentage fee can be less than or more than 3%, depending on your credit card issuers.

3. Over-Limit Fee. Never ever go over your credit limit. Going over your credit limit brings you more fees at the end of the month. Usually the over-limit fees charged by credit card companies are based on a tiered structure and on your ending balance.

4. Returned Payment Fee. Do you know that if you don’t have enough funds in your bank account or you enter the wrong account information for online payment that causes your bank to return the payment to your credit card, you have to pay a cost for it? Your bank will charge a $20-50 fee on your credit card bill at the end of the month.

5. Balance Transfer Cancellation Fee. Credit card companies are trying their best to squeeze as much money as possible from you that they will penalize you if you think of canceling the balance transfer deal in the middle of the process. If you do cancel a balance transfer transaction in the middle of the process, you will surely be charged.

6. Foreign Transaction Fee. There is a 3-5% foreign transaction fee if you use your credit card to conduct a foreign transaction in a foreign country. You enjoy the convenience of using your credit card anywhere in the world, but there is a charge.

In brief, you have to read the terms and conditions of imposed by every credit card issuer before you submit any new credit card application thoroughly to find out about the hidden fees.

Do you have a love-hate relationship with your credit cards? I am sure most credit card holders do. While it is true that credit cards bring excellent convenience to people, they are also money traps that people fall deeply into.

Don’t get me wrong. I am not saying that the plastic cards tempt you to overspend or the credit cards are the root cause of your credit card debts. Indeed, You are the one who should be responsible for the use of credit cards and credit card debts.

Ask yourself if you read thoroughly enough on financial tips and advice that helps you get more from a credit card and avoid falling into money trap.

Here are 7 ways to help you get more from a credit card:

1. Compare Interest Rates. Instead of applying for a low promotional interest rate credit card that only lasts for a very limited duration, search for a credit card that offers life time low interest rate. A life time or permanent low interest rate credit card helps to keep your monthly card payment low, especially on bigger purchases.

2. Apply for Credit Cards During Promotions. Promotion times are the best times where annual fee waivers, balance transfers, contests and free gifts are lavishly showered upon new credit card applicants by credit card companies to attract new credit card users.

You are also able to find the best balance transfer offered among various balance transfers that are being offered if you are paying too much for your existing outstanding credit card balance.

3. Keep Track of Your Reward Points. Always keep track of your accumulated points and browse through your credit card rewards catalog to see if you can redeem any usable product. Taking advantage of your credit card reward points by redeeming a home appliance at a discounted price or a cordless phone free of charge helps you save money in the long run.

4. Choose Cash Back Credit Cards. You may go for a cash back credit card if you always make full payment every month. You stand a chance to get most from a cashback credit deal.

5. Pick Credit Cards That Suit Your Lifestyle. Let’s say if you are an avid football team supporter, then use a football credit card that not only supports your club but also helps the new talents of the future.

6. Compare All Charges on Your Credit Cards. Besides comparing interest fees, it’s important for you to know the types of other fees such as annual fees, late payment fees, cash advance fees, over-limit fees, and some not so obvious fees imposed by credit card companies.

7. Use Your Credit Card Right After Your Statement Date. By using your credit card right after the statement date, you get to enjoy an interest-free period of up to 50 days. However, if you carry over an unpaid balance, send your payment as soon as possible to save on interest charges.

Now that you know the ways to get more from a credit card, make sure you use it as a check list each time you want to apply for a credit card.