SINCE YOU CAN'T ESCAPE FROM YOUR DEBT, YOU NEED A DEBT MANAGEMENT PLAN
What a Debt Management Plan Actually Is
One monthly payment, held and split out by the agency, running for as long as you need it and not a day longer.
Chapter 01
What goes into the plan
A debt management plan, or DMP, combines your unsecured consumer debt, mostly credit cards, into a single monthly payment. You're not taking out a new loan, and nothing gets consolidated onto one card. The plan is an arrangement between you, the agency, and each of your creditors about how the money you already owe gets paid.
Call the office to check which of your specific balances can be included. Secured debt, like a mortgage or a car loan, generally isn't part of this kind of plan. Unsecured revolving debt usually is.
A closed leather folio squared on a desk, one blank sheet under a brass clip.
Who holds it and how a payment moves
The agency holds the plan. You send one payment each month, and the agency splits it and sends it on to every creditor on your list, on the schedule that was worked out when you enrolled. You get a receipt from the agency, and each creditor sends its own statement showing the payment landed.
There's no credit check required to enroll, and you don't need to own your home to qualify. Enrollment itself takes about an hour, handled by phone and email, with the paperwork signed electronically.
Chapter 03
Leaving it, or finishing early
The plan runs month to month. There's no long-term contract holding you in it, so you can leave whenever it stops being the right fit. If you pay off your balances faster than the plan called for, there's no fee for doing that either.
Some people ask how a plan like this touches their credit file. That depends on the specifics of your case, on your existing accounts, and on how each creditor reports. A counselor will go through what it means for your particular file on the call itself, because it isn't the same answer for everyone.
DCAT. A+ rated by the Better Business Bureau. Call (512) 501-3955 to check which of your balances can go into a plan.
Before you call
Two things people ask before they enroll
Everything else is specific to your own balances. Call and a counselor will go through it with you.
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See what your own plan would look like
A counselor will go through your actual balances against what the plan can include, and what one monthly payment would come to.