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Debt Management
How does a Debt Management Plan (DMP) Work?
You deposit money each month with the credit counseling organization.
The organization uses your deposits to pay your unsecured debts, like
credit card bills, student loans, and medical bills, according to a
payment schedule the counselor develops with you and your creditors.
Your creditors may agree to lower your interest rates and waive certain
fees, but check with all your creditors to be sure that they offer the
concessions that a credit counseling organization describes to you. A
successful DMP requires you to make regular, timely payments, and could
take 48 months or longer to complete. Ask the credit counselor to
estimate how long it will take for you to complete the plan. You also
may have to agree not to apply for - or use - any additional credit
while you’re participating in the plan.
Source: The Federal Trade Commission
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Date Added: 2009-04-28 Views : 683
