Debt Management Programs
How a Debt Management Plan Can Help You
If you are unable to pay off your debts and have already applied the advice of a credit counselor, you might consider enrolling in a debt management plan, or DMP. A DMP allows you to deposit a set amount of money with a credit counseling organization each month, which is then strategically dispersed to your various creditors.
Debt Management Plans are designed to help consumers work off their debt as quickly as possible by leaving these decisions largely to credit counseling professionals. You (the debtor) deposit money with the organization managing the DMP on a monthly basis, which is used to pay unsecured debts, such as student loans and credit card balances.
Benefits of Debt Management Plans
One Monthly Payment
To reduce your stress and save you the hassle of juggling bills, we combine your debt into a single monthly payment that we distribute to your creditors. Note: this is not a "bill consolidation" or "debt consolidation" program. Unlike these programs, a debt management program allows you to pay off all your debt without putting you in even greater financial danger.
Low Interest Rates
By starting a debt management program, you show your willingness to pay off 100% of your debt. In return, many creditors are willing to help you out by reducing your interest rates and waiving late fees and over-limit fees. Many creditors will even mark your past-due account as "current" after they’ve accepted your DMP and received three consecutive payments.
Shorter Payoff Time
After your creditors agree to the terms of your program, your interest rates will be lower. This means that less of your monthly payments will go toward interest and more will go toward repaying your principal balances. This shortens the time it takes you to repay your debt. You’ll get an estimate of how long it will take you to pay off your debt.
Alternative to Bankruptcy
Many see filing for bankruptcy as a last resort, either because they’re morally opposed to it, not allowed to by their employer, or don’t want to pay higher interest rates for the 10 years bankruptcy will show on their credit reports. Although bankruptcy may be an option to consider, a debt management program is often a better solution.
Put an End to Collection Calls
If you’re really behind on your bills you’re probably getting calls from aggressive and unpleasant debt collection agencies. These calls may continue for about the first 90 days of your DMP, while your creditors are processing and accepting our proposals on your behalf. Once the 90-day period is over, debt collection agencies usually stop calling you.
An Increased Credit Score
Because each situation is unique, the exact impact a debt management program has on a credit score will vary from person to person. But, because a Debt Management Program results in you repaying everything you owe without opening new lines of credit, it will lead to a better credit score in most cases.
Satisfied Client Stories
Enroll Aid was able to properly place us in a federally approved program since we had over $27,300 in credit card debt. It really helps to know the laws in this country. I didn’t even know what the Fair Debt Collection Practices Act was. Wish they taught this to me in school back in the 70s.
Tyler J. Reynolds, Chicago, Illinois
This company is one of a kind. The software sends us updates on the process in such a way that I can go to work knowing that this well oiled machine is working for me. That peace of mind is everything to me.
George Ramos, Palm Springs, California
I came here to sign up for a program to get out of debt and I ended up getting my son forgiveness on his student loan debt. Killed two birds with one stone. Something about your company’s staff really sets you apart from the rest of them.
Michelle Bush, Dallas, Texas
This company is a one stop that can place you in whatever program you’re looking to get into based on your financial information. My advice to your future clients is to SEND DOCUMENTS ON TIME!
Emily Ruthstein, Soho, Manhattan, NY
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We understand how stressful it can be having to deal with debt and collection agencies. Contact us for a free evaluation and see how EnrollAid is able help relieve you from debt.
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