A Debt Management Program(DMP) is an arrangement in which a credit counseling or debt management agency negotiates with your creditors to reduce or freeze your interest rates, redeem late fees and make your monthly payments more manageable. Debt Management Programs are not for everyone but if you are trapped into a serious debt trouble, you may get some benefits from participating in one of these programs. Following are some of the strategies for getting the most out of your Debt Management Program.
1. Choose a Debt Management Program carefully- Debt Management industry is infested with too many fraud agencies and companies. Try to find out real credit counseling before enrolling in a DMP.
2. Make sure that you can make the negotiated monthly payment- Seek other options if you are not able to pay the negotiated monthly payments.
3. Get the DMP plan in writing- Never ever rely on verbal promises of the counseling agencies. Get a contract signed from them specifying payment fees, length of time and other necessary details until the debt are paid off.
4. Make your payments on time each month- For successful executions of your DMP make your payments on time on a regular basis.
5. Verification of payments made- It’s important to check your creditors in making the thing sure that they have received the agreed upon payments.
DMP’s and credit counseling agencies are notorious for fraudulent and deceptive practices. Always keep your guard up and watch your finances carefully. Never pay unnecessary or unworthy fees.