Take Control of Your Credit Card Debt

-- Why to Consider a Debt Management Plan

If you’re credit card debt is raging out of control, as the old adage goes, “Take the bull by the horns.” The Financial Specialists at our Consumer Credit Counseling Service (CCCS) agency specialize in helping consumers in financial distress, especially those buried in credit cards bills, to resolve their debt.

In addition to budgeting assistance and financial education, implementation of a Debt Management Program (DMP), or Debt Management Plan, is another strategy available to our credit counselors and their clients. A DMP is a systematic debt repayment program which may enable you to reduce your monthly payments, enjoy reductions in finance charges, and still pay off 100% of your credit card debt.

What is a Debt Management Program?
Our CCCS agency DMP clients make a single monthly payment to us which we electronically distribute to their creditors. Learn how a DMP works.

Even though a Debt Management Plan may not be appropriate for everyone, about one-fifth of the people we counsel benefit greatly from the program. Check out our Financial Health Quiz to determine if you may need debt management assistance.

For those struggling with crushing credit card debt, here are some of the advantages of joining a Debt Management Program. If you’re situation qualifies, signing up for a DMP will help you to:

• End collection calls.
  Once your creditors learn that you have joined our Debt Management Plan, they will stop contacting you.
• Pay less interest and fewer fees.
  Our CCCS agency credit counselors negotiate with your creditors for more favorable payment terms. Some creditors may drop your interest rate from 21% to 9%, others may waive your late and over-limit charges, while a few may not cooperate. Although each creditor offers different concessions, usually the benefits CCCS agencies can secure for you will be better than those you could get on your own.
  
  To learn what benefits your specific creditors offer to Debt Management Program clients, schedule a no-cost appointment for a credit counseling session.
• Shorten your payoff time.
  With lower interest rates and fees, more of your monthly payment will be credited directly to your principal rather than to the finance charges allowing you to pay down your balances more quickly.
• Reduce stress.
  In their most recent poll, the American Psychological Association found that more than 75 percent of Americans say that worrying about the economy and their personal finances are a leading cause of their stress. With a household budget, step-by-step plan, and our CCCS agency credit counselor at your side, you’ll have the support and encouragement you need to manage your debt and pay off your credit card bills.
• Avoid bankruptcy.
  Given that filing for bankruptcy is the best solution for some—like those with insurmountable medical bills—participating in a Debt Management Program is a better alternative for another group who are working, but still struggle with unmanageable credit card debt.
• Free yourself to meet your financial goals.
  Until you become debt free, it’s short of impossible to save enough to meet your long-term objectives like buying a home, taking the family on an international vacation, or buying a new fuel-efficient car. Once your credit cards are paid off, you can use the funds you were paying on past debt to build a financial future.

Gaining control over your personal finances and paying off your credit cards is a major accomplishment. Doing so will allow you to leave behind the anxiety caused by uncontrollable debt, improve your credit standing, and to make you feel so strong, you may even want to run with the bulls in Pamplona.

To learn more about the Debt Management Plan, your first step is to meet with a credit counselor to take part in a financial review, develop your budget and map out an action plan. During this session, you and your counselor may discuss the viability of a DMP.

Our Consumer Credit Counseling Service (CCCS) agency, a non-profit organization for more than 30 years, offers no-cost credit counseling with NFCC-certified Financial Specialists. To schedule an appointment, call 888.656.CCCS or start immediately online.

Call 888.656.CCCS or visit our Consumer Credit Counseling Services (CCCS) agency online to make an appointment for a no-cost credit counseling session.