What to Expect
Enrolling in a debt management plan is not a quick fix, but it is one of the most effective ways for an individual struggling financially to become debt free. It may take an individual years to complete the program - the time will depend on the amount of the individual’s debt before signing up. Expect help, but also expect to work for it.
Under a Debt Management Plan, individuals will:
- Have a lower payment
- Resolve debt
- Simplify debt with one payment per month
- Build strong money management skills
Personal Credit Counselor
Upon enrollment, each individual is assigned a Personal Credit Counselor. This dedicated professional will work with each person on an individual level to find the best solution for relieving debt. The goal is to teach our clients to make wise financial decisions in the future and develop a debt management plan that is specific to their financial condition by determining short and long-term goals.
Customized Payment Plan
The Debt Management Program is custom-fit to each person. This structured plan helps individuals control their debt load by making repayment manageable, while also helping them achieve a better financial status. The program also determines ways to take control of debt and regain financial stability.
No Credit Cards
Individuals enrolled in our DMP program are required to give up all credit cards and refrain from obtaining any other credit while enrolled in the program. The goal is to stop adding debt - once the DMP is complete, the individual will be debt free with the exception of a mortgage or car loan.
Once the payment schedule is set, the counselor will talk to creditors and persuade them to reduce interest rates and waive late fees to shorten the length of time an individual may be in debt. The counselor may also be able to convince creditors to "re-age" the account (report past due amounts as current).
Once in repayment, our credit counselors will help each individual set up an acceptable budget. This helps clients track their spending habits and become more aware of unnecessary expenses and impulse buys. The counselors check in with clients for several months to see how well they're following their spending plan.
Progress Reports & Follow-up Sessions
Each client’s personal credit counselor will be available throughout the duration of the program, and will contact them regularly to discuss progress, review financial goals, and help make budget adjustments. These ongoing follow-up sessions will be a measure of each person’s progress throughout the duration of the Debt Management Program and give them the knowledge and confidence to stay on top of their debt.
Upon the successful completion of a debt management program, the original debt will be successfully paid off and the strategies developed during the debt management program will lead each individual toward continued financial success.