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Debt Management Plan


Pay off your debt

Debt Management Plans teach you how to eliminate debt fast & allow you to start building wealth again.

Stop collection calls • Pay off debt fast • Create a realistic budget

Consolidate debt payments • Reduce or eliminate penalty fees

A financial coach will help you determine whether a Debt Management Plan is your best path toward effectively managing debt levels. Once you enroll in a plan, we become your personal advocates, working closely with you and your creditors to pay off debt fast.

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How We Help

What is a Debt Management Plan?

A Debt Management Plan (DMP) is an affordable debt relief program that involves working with a financial coach to create a personalized budget. The coach works with you and your creditors to create realistic monthly payment plans, minimize fees, stop collection calls and teaches you how to pay off debt more efficiently.

Step 1

Step 2

Step 3

Debt Free!

Free Debt Counseling and Coaching

Your path begins with a free debt counseling session, which includes customized budgeting assistance and a debt repayment plan.

You will be provided with educational materials and personalized money management advice, making sure you have all the tools and knowledge you need to succeed.

Your debt and financial information will be carefully reviewed to assess your Debt Management Plan eligibility. This step also determines that you have sufficient resources to make the Debt Management Plan payment.

If you are a good fit, a proposal will be sent to creditors on your behalf based on the plan that was created with your financial information in mind.

WE WORK WITH CREDITORS ON YOUR BEHALF

You will be enrolled in consistent and predictable automated payments that come straight out of your bank account each month.

We send the funds to creditors using electronic transfers, ensuring payments are received on schedule, which will stop the constant collection calls.

TRACK YOUR PROGRESS

We send a monthly progress report for you to review and compare to the statements you receive from the creditors.

PAY OFF YOUR DEBT FASTER

As one debt is completely paid off, the funds are reallocated toward the remaining accounts, accelerating your debt payoff.

Working Together

What We Do
For You

Our expert financial coaches will take care of all the heavy lifting so you don’t have to. Our Debt Management Plan includes:

Budgeting Assistance

A personalized budget and continued advice will be provided throughout the debt management program.  You will also have access to several personal finance and budgeting courses to help you refine your budget over time.

For more budgeting assistance, try our budgeting calculator tool.

Clear Communication Among All Parties

Your debt counselor will serve as an intermediary between you and your creditor. To ensure clear communication between all parties and prepare monthly progress reports showing your most up-to-date balances and payment history.

To make things simpler on your budget, your debt will be consolidated so that you make only one monthly payment. Each month they will accept your deposits electronically and disburse those funds directly to your participating creditors on a fixed schedule to ensure timely payment.

Education

We offer free finance courses and seminars on preventing identity theft, using credit wisely, understanding your credit score and credit reports, financial planning and more.

View the full list of courses

Housing Counseling – If needed, we have HUD-certified housing counselors who can assist future and current homeowners.

 

 

Ongoing Support

A team is standing by to help you at a moment’s notice. A debt management program gives you access to real people who care about your finances – making them the best debt management programs available.

What We Need
From You

You are the most important partner in the Debt Management Plan. Your financial coach is here to empower and educate you until you are debt free. Here are your next steps:

Learn

We offer completely free and practical education on a variety of topics, including budgeting and using credit wisely.

Make Payments

As long as newly budgeted payments are paid in full and on time each month, there is no reason for you not to succeed on the DMP.

No New Credit

Do not seek new credit while on the DMP, as other creditors will know about these actions through your credit report. Instead, if you are having trouble, give us a call and we will work with you to adjust your customized budget.

Stay Informed

It’s crucial that you monitor the statements received from your creditors each month (The creditors will not disclose this information directly to us). You should compare that information to what’s in our monthly progress report and ensure that everything matches. If anything is different between the creditor statement and what we show in our paperwork, give us a call.

Call Us

Our coaches are one phone call away, ready to offer additional advice and answer any questions that come up.

(800) 431-8157

The Creditor's
Responsibility

The DMP serves the dual role of helping you pay off debt while ensuring creditors receive the money owed to them. As a result, creditors are willing to work with organizations like us in a variety of ways:

Accept Payments

Creditors allow us to transmit payments electronically directly to them, so the funds we disburse on your behalf are transferred securely, quickly and without complications. It is extremely rare that a creditor, even those who don’t offer other kinds of help, will refuse to accept a payment through a DMP.

Stop Collection Calls

If debt collectors keep calling, a Debt Management Plan will help. Typically, creditors will stop calling to collect a debt once they have received three monthly payments in a row. 

Update Your Credit Report

While on the DMP, your credit report will say that you are enrolled (this has no effect on your credit score). After you complete a DMP and pay off your debts, the creditor will mark the debts as paid in full and remove the narrative of your participation in the DMP.

Concessions

Every creditor offers a different set of concessions. Most will waive interest rates, lower monthly payments, re-age accounts to stop late fees, or offer other concessions to help clients successfully complete a DMP.

Am I Eligible ?

Not all debt is created equal. Only certain kinds of debt can be included in a Debt Management Plan.

Eligible for a DMP
Unsecured Debts:
  • Credit Cards
  • Small Medical Debts
  • Collection Debts

Not Eligible for DMP,

but let us show you how we can help!

Hear From Our Clients

Any Questions?

Talk with a counselor today

1 (800) 431-8157

Is the debt management plan right for me?

Our debt counseling is free, confidential, and carries no obligation. If you’re interested in a free Debt Management Plan, call and speak directly to one of our debt coaches to see if our program is right for you.

Is it available?

If you live in the United States, then the answer is yes. Credit.org offers debt management plans in all 50 states. We are merely a phone call away, call us at 1 (800) 431-8157.

Is it worth it?

We work in partnership with creditors to give our clients certain advantages not available to the public. Some of the most common benefits you can take advantage of include:

  • Lower monthly payments
  • Consolidated debt payments
  • Reduced interest
  • Penalty fees waived or reduced
  • Avoiding bankruptcy
  • Re-aged past due accounts
  • Access to professional help
  • Debts eliminated in 5 years or less
  • Debt payoff accelerates during the DMP
  • Collection calls stop
  • Free debt counseling
  • No obligation required
  • All debt counseling is strictly confidential

Will a DMP affect my credit?

You don’t have to have a good credit score to qualify for a DMP. Participation in a DMP has no direct impact on your credit score. However, being enrolled may change some aspects of your credit report that may have a negative impact. Talk with our coaches about the effect on your credit based on your unique mix of creditors.

Ultimately, a DMP helps to improve your financial situation by helping you to repay your debts in full. This can only have a positive impact on your credit in the long run.

Get the Financial Advice that is Right for You.

Debt Management FAQ’s

What is a Debt Management Plan?

A DMP is a payment plan that helps you repay your debts. Under the plan, you deposit funds with us each month, which we disburse to your creditors. We also handle calls from your creditors to ensure everything is going smoothly. The vast majority of our payment processing is electronic, so funds are transferred directly to the creditors without delay. Creditors may also offer to reduce or waive fees, finances charges, or interest rates to help lower your DMP payments and ensure your success on the plan. Learn More

Will a DMP affect my credit?

You don’t have to have good credit to qualify for a DMP. Participation in a DMP has no direct impact on your credit score, but being enrolled in a DMP may change some aspects of your credit report that may have a negative impact. A particular creditor may look at a DMP adversely when reviewing your credit.

Also, some creditors may indicate that you are “not paying as agreed” while you are on the DMP, even though they are accepting the reduced payments. Our certified coaches can talk to you about the effect on your credit based on your unique mix of creditors.

Ultimately, a DMP helps to improve your personal financial situation by helping you to repay your debts in full. This can only have a positive impact on your credit in the long run.

In my DMP, can I just include the bills I’m having problems with?

No. We must include all of your unsecured debts in the plan, and we treat them all equally, even if some are more manageable than others.

Can I keep some of my credit cards while I am on the DMP?

No. All of your lines of credit must be closed while you are on the DMP. Only very rarely are exceptions made; in these cases, some clients may be able to keep one credit card account open for business purposes.

Typically, creditors are ready to open new accounts for our clients as soon as they complete the DMP, especially if their payment history was solid while they were on the plan.

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Get The Financial

Advice That Is Right For You


Build Your Credit.
Get Out of Debt.
Own A Home.

One of our Financial Coaches will contact you to discuss the path to reaching your financial goals.

Speak to a Coach Now 800.431.8157
Hours of Operation Monday through Friday 7am to 7pm (Pacific)