A DMP is a systematic way to pay down your outstanding debt through monthly deposits to your credit counseling agency, who will then distribute these funds to your creditors. By participating in this program, you may benefit from reduced finance charges (Lower APR) and fewer collection calls. When you have completed your payments they will help you reestablish credit.

It takes approximately 48-60 months to repay debts through a DMP. Your accounts with creditors will always be credited with 100 percent of the amount you pay through an NFCC Member Agency. A DMP serves the dual role of helping you repay your debts while creditors receive the money owed to them.

While many creditors view a debt management plan positively, it is never guaranteed that they will do so. It should be clearly understood that the creditor is under no obligation or expectation of approving your enrollment, but such is done as a courtesy at the creditor's discretion.

Application, budget analysis and set up time may vary between 30 to 60 days prior to the initial monthly payments are forwarded to creditors.

A Plan is set up as a month to month payment arrangement, where the client has the ability to payoff their debt within 4 to 5 years.

Benefits include; reduced APR (concessions), the possibility of late and over the limit fees waived, end to collection phone calls, one monthly payment and no penalty for paying early.

Some creditors will provide REAGING to the accounts (technique that can be used to help clean up your credit history, particularly if the debtor only had a brief problem and are now back on firm financial footing). REAGING will not start until the 3rd consecutive payment.

Creditors expect payment every 30 days and do not favor late payments.

Some creditors will drop client after one payment missed by the due date, i.e. American Express, Chase, Capital one.

All active accounts enrolled in DMP will be closed and no new applications for credit is permitted

Each account listed on the participant's individual credit report will be noted, "Actively participating in credit counseling plan" or "Actively participating in Debt Management Plan."