A Debt Management Program: What's in it for you?

At ClearPoint Credit Counseling Solutions, it's not unusual for clients to greet our credit counselors with bags of unopened credit card statements. Their financial situation has become so dire that they don't want to face the numbers. A Debt Management Program, also known as a Debt Management Plan or "DMP," is a structured repayment program designed to help those drowning in unmanageable credit card debt. If you're in this predicament, read on.

What is a Debt Management Program?
It's a systematic, step-by-step, personalized plan for paying off 100 percent your debt. Participants make a single monthly payment to a consumer credit counseling service such as ClearPoint, and the agency distributes the funds to their creditors. See here for information on how a DMP works

Although a Debt Management Plan isn't appropriate for everyone, approximately 20 percent of clients who receive credit counseling at ClearPoint chose to join the program. Click here for signs that you may need debt management help.

The following benefits are often realized by those who join a Debt Management Program at ClearPoint.

• Eliminate collection calls.
  Consumers who are significantly behind on their bills fend off relentless creditor calls from aggressive, persistent and unpleasant collectors.
  These calls will continue for about the first 90 days of the DMP (while creditors process our proposals). But during this period, you may tell collectors that you've joined our debt repayment program and refer them to our Customer Service Department. Once the 90-day period is over, creditors usually stop contacting you.
• Reduce stress.
  Our clients are comforted by having and following a program which will ultimately eliminate their debt. Prior to joining the plan, many find themselves floundering to get out of the stressful situation, but they're not sure what to do. Consumers on a DMP regain control of their finances.
  
  Debt management counselors are available throughout the program to help clients address any problems. The credit counselors at ClearPoint are invested in helping their clients stay on track. Having someone to consult with about your credit and debt issues can also help to reduce your anxiety.
• Make just one monthly payment.
  To prevent you from juggling your bills and reduce your stress, ClearPoint consolidates your obligations into one monthly payment which we will disburse electronically to each of your creditors.
• Avoid bankruptcy.
  Many see bankruptcy as a last resort. They may be ethically or morally opposed to it, not be allowed to file by their employer, or not want to pay higher interest rates for the next 10 years (when the bankruptcy drops off their credit reports). Although bankruptcy may be a viable option, many times, a Debt Management Program is a better alternative. ClearPoint consumer credit counselors don't provide legal advice, but they inform clients if they determine that it would be in their best interest to consult an attorney.
• Lower interest rates, late and over-limit fees.
  By joining a Debt Management Program, you demonstrate your desire and intention to pay back 100% of your debt. Creditors make concessions to the original agreement to help their clients pay back their debts.
  
  Interest rate reductions and waived late and over-limit fees are the number one draw for those joining a DMP. And, most creditors, but not all, show delinquent accounts as current after they accept the plan and receive three consecutive payments. Every creditor offers its own unique concessions. To learn what benefits your creditors offer DMP clients, schedule a no-cost appointment for a credit counseling session.
• Shorten payoff time.
  During the credit counseling session, counselors will estimate your payoff time. After receiving allowances from the creditors, more of your monthly payments will be credited to your principal balances, allowing you to shorten the duration of your payoffs.
• Become debt free.
  The goal of the program is to help you become debt free. The DMP is a tool, along with your budget and financial education, to assist you in getting out of debt and planning a bright financial future.

ClearPoint Credit Counseling Solutions offers no-cost budget and credit counseling from NFCC-certified Financial Specialists. To schedule an appointment, call 877.422.9045 or start immediately .