Debt management programs and your credit history
A debt management program is your solution to getting out of debt now and
without damaging your credit score and credit worthiness. A debt management
program puts you on the right track to lowering your monthly payments,
eliminating debt, and show your creditors that you intend to make good on your
debts. Debt management is not bankruptcy and you don't default on any loans,
you just pay them off sooner and more importantly smarter with the help of a
What can a DMP do for me?
A DMP or debt management program can eliminate your debt and negotiate your
with your creditors for lower amounts that you owe now. Included in your debt
management program will be all unsecured lines of credit you currently have,
credit card payments, medical bills and even some types of student loans and
payday loans. Your credit counselor will find you a debt management program
specialized to your personal financial situation to eliminate your debt
less money than you currently owe.
A debt management program is the solution
Debt management programs are the solution for you if you find yourself unable
to keep up with mounting debt and credit card bills. It is the best option to
negotiate your outstanding debts for less money, secure a loan with a lower
interest rate than your credit card company can offer you. You will also be
getting out from debt now before your situation worsens and puts you at risk
for a bankruptcy without damaging your credit history. Simply put a debt
management program will take your debts and lower them, consolidate the
balances, and give you one low monthly payment that actually pays down more of
the principle you owe. All this and you still look good to credit lenders. You
are still making your payments and fulfilling your financial obligations to
your creditors, you simply are using a payment program to do this more
efficiently and for less money.
Hints to get the right debt management program
When getting a debt management program to solve your debt problems, make sure
you get the program in writing and never ever pay outrageous fees, shop around.
Only accept a DMP that you can afford pay each month. If it is too high, look
for another program that fits in your monthly budget. Finally get your debt
management program approved by your creditors before paying it.