Debt Management Plans


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

Consolidate debt payments • Reduce interest rates and or eliminate fees

Debt Management Plans provide a path to eliminate debt fast, and allow you to start building wealth again.

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

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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!

step1

FREE DEBT COUNSELING

Your path begins with a free debt counseling session, which includes customized budgeting assistance and information about Debt Management Plans.

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, we will enroll you into a Debt Management Plan and send proposals to your creditors, based upon the plan that was created with your financial information in mind.

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.

step two

WE WORK WITH CREDITORS ON YOUR BEHALF

You will make one consistent payment that comes straight out of your bank account each month.

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

step three

TRACK YOUR PROGRESS

We send you a monthly progress report via the Customer Web Portal so you can review and compare to the statements you receive from your creditors.

step four

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

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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 Management Team 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.

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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 Debt Management Plan.

No New Credit

Do not seek new credit while on the Debt Management Plan, 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

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The Creditor's
Responsibility

The Debt Management Plan 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

Once enrolled in a Debt Management Plan Creditors allow us to remit payment to them on your behalf. In most cases, payments are sent electronically, quickly and without complications. It is rare that a creditor will refuse to accept a payment through a Debt Management Plan.

Stop Collection Calls

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

Concessions

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

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

eligibility
Not Eligible for DMP,

but let us show you how we can help!

not eligible

Hear From Our Clients

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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 financial 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 "DMP"?

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 Debt Management Plan "DMP" affect my credit?

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 Debt Management Plan "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 Debt Management Plan "DMP"?

No. All of your credit cards must be closed while you are on the DMP. However, on rare occasions one credit card account can be left open for business and or emergency 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)