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What is a Debt Management Plan (DMP)? The DMP is a debt repayment program that allows you to make one simple payment a month to CCCS, who will distribute it to your creditors for you. The DMP serves the dual role of helping you repay your debts and helping creditors collect the money owed them. Your counselor will review your financial situation and design a workable budget and repayment plan.

How does the debt management plan affect my credit score? Your credit score is not directly affected by joining a debt management plan (see 4 credit-scoring myths). While some lenders may treat credit counseling unfavorably, the long-term effects of a debt management plan are beneficial. In fact, the debt management plan is designed to allow you to rebuild and restore your credit history by giving you an opportunity to:CCCS-OC will never turn anyone away who requests debt counseling. However, our Debt Management Plan may not be appropriate for every situation. The DMP is designed mostly for those that are behind on their accounts or who are only making the minimum payments on their cards.

What are the benefits of the debt management plan? Most creditors provide financially distressed clients the following direct benefits through the debt management plan: For consumers that are currently past due on their accounts the debt management plan will provide the immediate benefits of lower payments, late and over limit fee suspension and account re-ages. These benefits immediately provide our clients with a fresh start on paying their accounts and enable them to avoid collections, charged-off accounts and possible bankruptcy.CCCS works with thousands of creditors nationwide. We have established relationships with all the major credit card companies, most chain store credit departments and finance companies.

What are the benefits of the debt management plan? Most creditors provide financially distressed clients the following direct benefits through the debt management plan: For consumers that are currently past due on their accounts the debt management plan will provide the immediate benefits of lower payments, late and over limit fee suspension and account re-ages. These benefits immediately provide our clients with a fresh start on paying their accounts and enable them to avoid collections, charged-off accounts and possible bankruptcy.Some lenders may view a credit counseling notation negatively. Fair Isaac is the company that invented the FICO credit risk score that lenders use. They have stated that in calculating your FICO credit score, they do not consider “whether or not you are participating in a credit counseling of any kind”.

Do you have other plans other than the Debt Management Plan? We provide educational classes for our clients and the community on topics dealing with budgeting, money, management, first time homebuyers, credit reports and much more. Click here to obtain a seminar schedule or look for the schedule in your quarterly newsletter.CCCS works with thousands of creditors nationwide. We have established relationships with all the major credit card companies, most chain store credit departments and finance companies.

How long will my accounts take to pay off on the debt management plan? The debt management plan is designed so that consumers can pay off their accounts within a 3 to 5 year period. Some clients begin the debt management plan during a time of severe distress due to an unforeseen hardship and therefore are only able to make minimum payments to start. As they begin to regain financial stability, however, many clients are able to send more than the minimum payments and therefore complete their debt management plans earlier than forecasted.Absolutely! In fact, less than one in ten clients that we see use a Debt Management Plan. It is great tool if it is the appropriate tool. What we try to do is give people options, examine each option, and help lead them to their best decision – many times, the best decision, it is not a Debt Management Plan.

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