Life on a Debt Management Program

Signing up for a debt management program is easy; it's a matter of finding a company you feel comfortable with that is difficult. There should be no pressure added from the company you speak with, joining a DMP is your decision and you should feel like you are in a partnership with the company, meaning you both have control over your financial situation. Below you will find information on debt management programs and what they offer.

First off, once you decide on a DMP your partnership will begin as soon as the company receives a client agreement. The counselor you speak with will become your personal counselor and they will send proposals to each of your creditors outlining your new repayment plan. However, not all creditors will process proposals immediately. It may take several weeks before the creditor notifies the counselor that the proposal has been accepted. Some creditors might request a higher payment than what was proposed, which in that case the counselor will notify you immediately.

It's the first few months that are crucial to ensure success on a Debt Management Program. You will find that some company's offer counseling throughout the first steps of the process to make certain that the proposals have been accepted and that you are receiving creditor benefits. A great aspect about having a personal counselor is that you should be able to:

* Change your payment method

* Notify them of creditors phone calls

* Report any errors on your statements

* Answers to all of your questions

If you want to earn special benefits like lower interest rates and waived late fees you'll first need to be consistent with making your payments on time. Most creditors will start granting benefits upon acceptance of your proposals. However, some other creditors may take up to three consecutive payments before offering full benefits. That's why it is important for you to carefully review your monthly creditor statements such as when benefits are granted to make sure they appear that month. You should also check each month to make sure that you are receiving credit for your payments made through the debt management company you chose to sign up with.

As most companies promise, the collection calls will stop. Yet, it may take up to three consecutive payments from the credit counseling company, before the calls stop completely. If a creditor happens to call, you should inform them that you are working with a credit counseling company to eliminate our debt. If they call again, notify your counselor and they will contact that creditor for you.

One thing that is crucial is to not make any additional charges on your credit cards once you have enrolled in a program. With most companies, if you do incur new charges, you are at risk of jeopardizing your acceptance into the program. Any additional charges could affect your payment schedule and your monthly payment amount because it affects your balance owed.

Usually credit-counseling companies will allow for you to pay several different ways. Some forms of payment are E-pay systems, which offers a convenient and secure way to make your payments. The payment is automatically deducted from your checking or savings account on the scheduled due date. This will ensure that your payment is received on time, every time. Another option available is if you choose to send your payment by cashier's check or money order. However it is important to send your payments in early enough to allow enough time to get there.

If you decide to sign up for a dept management program you should receive an estimate of the length of time it will take to complete your program. You should also get a breakdown of all the debts you owe, the amount owed to each creditor, the proposed payment to each creditor, and the anticipated number of months needed to pay off the debt. As your program continues, you should be able to contact a counselor to get an updated version of your repayment schedule. This will provide you with goals to shoot for each month as you see your debts decreasing.

So that's the process of a DMP, but one may still wonder, what's life like on a DMP. Well, your money isn't locked up, and you aren't under house arrest where you can't go out and have fun still. It's up to you to decide how much money you need to set aside each month making sure you have enough to cover your costs, as well as cover any other costs you may have. To relieve stress, you should get out and do something you enjoy whether it's simply going for a hike or hanging out with friends. There is plenty to do while being on a debt management program, which no one will know about unless you choose to tell them so because all your information is kept strictly confidential.

For more information relating to debt management programs and other financial assistance please visit http://www.inchargeorg.org.

Katie Spencer is a contributing writer for a number of international financial journals both online and in print. Katie has been delivering financial education to the public in a variety of areas to include budgeting, credit and debt management, and money saving tips. Recently, Katie has been in partnership with a national educational foundation to deliver financial advice to American consumers via the web. For more information and to read the latest articles published by Katie, please visit http://www.inchargeorg.org

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Debt Relief Information:

Related Articles

IVA: Individual Voluntary Arrangement
What Is an IVAThe IVA (Individual Voluntary Arrangement) was introduced by The Insolvency Act of 1986 as an alternative to bankruptcy which benefits both the debtor and the creditor. An IVA enables people facing financial difficulties to come to a formal agreement with their creditors rather than having to face bankruptcy.
The Last Debt Solution Should Be Bankruptcy
A debt solution like bankruptcy should really only be used as a last possible solution. The problem with this solution of debt problems is that it includes a lot more than simply eliminating debt.
Take Careful Consideration Before Filing Bankruptcy
Filing bankruptcy is not fun! It is a last resort if you are interested in keeping an active and acceptable credit report. Bankruptcy is the condition of bringing all your assets and deficiencies into an insolvent state.
Learn How to Get out of Debt
Debt is becoming number one problem in the United States Today. The average American family has at least $8,000 in credit card debt and most college students who just graduate from college have $3,000 to $5,000 credit card debt in their first year after college.
Creating A Realistic Budget
Budgeting -- ooh, what a scary word! If you want to frighten someone whose finances are out of control, suggest that they tally up their expenses on a piece of paper. We all understand the value of such an exercise, but when it comes to the practicality of putting a budget together, we get cold feet.
New Bankruptcy Law - Five Essential Things to Know
Last April, Congress passed the Bankruptcy Abuse and Consumer Protection Act, the most sweeping reform of our nation's bankruptcy laws in more than twenty-five years. Proponents of the bill argue that most consumers who file for bankruptcy do so simply because they do not wish to pay their bills.
The ONE Law You Should Be Breaking
There is a law all smart people break.Parkinson's law.
The Debt Free Lifestyle
Many people have been taught that you cannot get ahead without debt. We are also inundated with advertising telling us we can have anything we want.
Selecting A Credit Counselor; Asking The Right Questions.
When you find yourself thinking about using a credit counseling service, you need to be verycareful. You need someone who will help you, not just some pushy sales associate who wantsonly to sign you up for their service.
How To Avoid Medical Collections
With medical collections costing doctors millions upon millions of dollars in unpaid bills and collection fees, many people have just one question: Who are these people who are trying to stiff the doctors who delivered them from great physical pain (or the flu, hypochondria, not-so-white-teeth, or a nose that didn't look enough like Brad Pitt's)?Well, I'm here to tell you who these people are, or at least some of them.They're me.
Bouncing Back from a CCJ
Should you be unfortunate enough to face a CCJ - but subsequently succeed in having it either set aside or reversed - the court will automatically remove the entry from the Register of County Court Judgments.The court must send notification of cancellation to the Registry Trust within three days of the date of the order.
New Bankruptcy Law - Targeting the Wrong People?
Last April, President Bush enthusiastically signed into law the oddly-named Bankruptcy Abuse and Consumer Protection Act. This bill, representing the biggest overhaul of bankruptcy law in twenty-five years, was written in order to discourage "bankruptcy of convenience.
Worried About Debts?
Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car?You're not alone. Many people face a financial crisis some time in their lives.
Fast Track Out of Debt
You go to the mail box and scan - a couple fliers (nah), your magazine subscription (yes!) and bills (groan). Every month the bills show up and as you sigh and take out your check book you wonder if you will ever be free.
Reduce Your Debt With These 5 Tips
It's never pleasant to realize that you're in financial hot water, but pretending the situation doesn't exist is NEVER the way to deal with the problem. If you're having trouble meeting monthly payments, find yourself borrowing or using credit cards to meet daily expenses, or have one or more of your credit accounts turned over to a collection agency, it's time for you to get proactive and bring your debts back under control.
Two Ways To Debt Relief
There are many debt relief programs out there both off line and online. Sometimes it can be difficult to chose one from the other.
Credit And Debt Relief--A One Stop Solution
Amy Wright, 34, was extatic when her realtor showed her the three bedroom townhome overlooking the lushious golf course. It was exactly the home she was looking for.
Debt Collectors: Men or Mice?
Who are these people anyway? They viciously harass you and call you bad names. They embarrass you beyond belief by leaving detailed messages with your neighbors and at your workplace.
Corporate Debt Management - Perspective on the Why
Entrepreneurs have a tough time in their formative years. They try too many things to get a foothold on this competitive business climate, and that too they try them too soon.
Debt Free Living - 5 Tips To Get Out Of Debt
A few times I wonder what sort of credit system moved the global economy 200 years ago. If the intention of getting into a business is meant to 'help' fulfill the needs and wants of someone, I don't see how credit card salesmen can drove more people into debt and backruptcy.