Try our Debt Auditor Financial Independence Calculator to see how much you can save with a consolidation loan.
A debt management program (DMP) is the poor second cousin of a good Consolidation Loan. It is for people who have a poor credit rating, and are having trouble even meeting monthly minimums. It is a kind of "intensive care" solution.
Very often, a Debt Settlement program is the better solution. Click here to learn more about debt settlement.
The debt management company that will manage your program becomes your representative to the credit card companies. They will take charge of paying your debt back, and improve the terms with all of the companies through negotiation. You arrange to pay them the monthly fee and they take care of the credit card companies. Debt management programs run from 3 to 5 years.
During the time you are in a debt management program, you will not be able to activate new credit cards or take out new loans. You will be able to keep one credit card available for emergencies, and that's it. Companies will agree to improve the terms of your debt because you are unable to meet the original terms. If they see you getting new credit cards, all deals may be canceled.
These programs can be lifesavers, but some of them can also not be. A good debt management program will dramatically improve the interest rates and the monthly payment. Reputable ones have good relationships with creditors, and can negotiate payment arrangements that the individuals often can't.
Further, by taking over the handling of your debts, you are protected from error.
First of all, you must do the math. Click here to evaluate your situation with our Debt Auditor Calculator.
Once you know the numbers, you have to evaluate if the offer the debt management company makes you adds up.
Most importantly, will you have the discipline to change your spending habits so that the debt management program will work? If you fail to meet the terms, you can cause more harm than good. If you succeed, this can be an elegant solution.
There are many companies that specialize in debt management, consolidation, and reduction. We recommend:
A top rated debt relief company with consolidation, management and debt settlement programs. Free consultation.
Call them at at 1-866-603-6980 (9AM to 8PM Eastern time) for a free telephoned Debt Evaluation. Or click here to apply on their site. To be eligible for CuraDebt, you must have $10,000 or more in debt and be able to pay $200/month. CuraDebt does not operate in the following US states: CT, DE, GA, HI, ID, KS, KY, LA, ME, MT, ND, NH, NJ, NV, OH, OR, PA, PR, RI, SC, TN, UT, VT, WV and WY.