Debt Management Plan

What Is a Debt Management Plan?

A debt management plan is a way for you to pay down your debts more easily. It is a safe alternative to other, sometimes more hazardous means of debt repayment, such as loan consolidation or debt settlement.

A debt management plan (or program) is an agreement between you and your credit card company and/or unsecured creditors, with a nonprofit credit counseling agency, like our CCCS, acting as a mediator.

When you join, you are still in full control of your accounts, and you aren’t just transferring debt over to another creditor. You do not borrow money, and with the assistance of a credit counseling agency, your creditors often lower your interest rates while you’re on the debt management plan, waive late fees, or bring your accounts current. For some clients, joining the program will lower their monthly payments. Ask your credit counselor what specific allowances your particular creditors will offer you. You and your counselor can work with your creditors to find a comfortable rate of repayment, usually at a lower interest rate.

How Does a Debt Management Plan Work?

When you sign up for our CCCS’s Debt Management Plan, you enroll all eligible credit accounts. You agree to stop using your credit cards until your debt is paid off, and you will choose a day to remit your payment every month. Many people choose a date in the middle of the month so that their credit payments are taken from a different paycheck than their rent or mortgage payment, for example.

Instead of having to keep track of our different credit card bills, you will submit one payment, once a month, on the date you agreed upon to ClearPoint. After that, we will disburse the payments to your creditors.

The amount you pay every month won’t change, so you’ll be able to better plan your budget.

You will still receive all your statements from your creditors so you continue to monitor your accounts, and to pay your debt down faster, you can pay greater amounts whenever you choose.

In short, a debt management plan gives you the ability to count on one consistent payment every month, and can save you from barely affordable interest rates.

A free credit counseling session can help you determine whether a debt management plan is the right choice for you, and address any concerns. Our counselors will also offer other debt repayment options.

Get started now by filling out the online application, or call us at 1.888.656.2227 (CCCS).

If you aren’t ready to make the call, but are still interested in learning more about our debt management plan, read over our FAQ or see what our credit counseling clients, who have successfully completed our program, have to say.