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What Is A Debt Management Plan?
By: Neil Melvin
A Debt Management Plan (DMP) is a mutual agreement between you and a Credit
Counseling Agency (CCA). Simply put, you agree to repay your debts in full over
time, without taking on any more debt. In return, most creditors will agree to
significantly reduce your interest charges and waive any late fees.
Even though DMPs are often referred to as Debt Consolidation — there is a
difference. While DMPs consolidate your monthly payments into one, easy payment,
they are NOT Debt Consolidation Loans.
Save Time:
A DMP can help get you out of debt more quickly than you could on your own.
Save Money:
A DMP can drastically reduce the high rates of interest typically charged by
most creditors. They also eliminate late fees, so more of your money goes toward
reducing your debt.
Gain Peace of Mind:
Besides putting an end to harassing calls from collectors, the right provider
can guide you through a difficult time and help you plan a brighter financial
future.
Your Financial Future Is More Stable:
DMPs have less impact on your credit history than Debt Settlement or Bankruptcy,
so you're more likely to gain access to credit again once you've taken care of
your debts.
Solving One Problem Doesn't Create New Ones:
Unlike Debt Consolidation Loans, DMPs do not incur additional secured debt that
could put assets, such as your home, in jeopardy.
Getting out of debt is not impossible. Bankruptcy is NOT the only solution. If
you can stick to the DMP (which is easy!), you can get yourself out of serious
debt in usually 3 years time. That may seem like a long time, but think about
it, a bankruptcy stays on your credit report for 7 years!
About the Author:
As a college graduate I found myself in debt. I discovered credit counseling and
found they offer a debt management plan (DMP). After learning about a DMP, I was
relieved that bankruptcy was not the only way. Find out more and how to start
your debt management plan! Can be done 100% online. Visit: http://www.credit-help.freeservers.com
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