Debt Management Plan (DMP) - What You Should Know

In recent years, the Federal Soldier Trade Committee (FTC) have taken action to litigate respective “so-called” debt management organizations. The FTC postulates that these organisations deceived consumers, charged high fees and didn’t offer the services they claimed to provide.

A reputable debt management credit counseling organisation should use licensed and trained credit counselors, who educate their clients on budgeting, saving money, debt management and consumer credit.

A Debt Management Plan is a system, where consumers who are overwhelmed by debt, seek the services of a debt management and credit counseling service. The consumer sedimentations money into an account, that is used by the DMP to pay off the consumer’s medical bills, student loans, credit cards, etc.

If you are currently enrolled in a debt management plan, the FTC counsels the following:

• Contact your creditors and allow them cognize what you will be paying your measures through a debt management plan.

• Check your monthly statements to guarantee that your measures are being paid on time.

• If you happen that your measures are not being paid on time, phone call your creditors and arrange a payment schedule, immediately. Wage your measures on time.

If your Debt Management Plan organisation travels out of business, make the following:

• Contact your bank and halt payment on any money going to the DMP.

• Contact your creditors and allow them cognize that your DMP is out of business and that you will be responsible for paying your bills.

• Pay your measures directly to your creditors.

• Get a free transcript of your government credit report. Check for any negative information. If you happen any missed payments or late payments, contact your creditor and see, if they will take the information.